Starbucks Will Pay $35M to NYC Employees After Violating Labor Laws

NEW YORK CITY —Starbucks will pay $35 million to New York City Starbucks workers as part of a settlement after the coffee company alleged violated multiple Fair Workweek Laws, officials announced on Monday.

Around 15,000 hourly employees will receive $50 for every week worked from July 4, 2021, through July 7, 2024, according to Mayor Eric Adams. Employees will receive a check in the mail this winter.

“The city’s Fair Workweek Law provides workers with vital protections, like the right to a predictable schedule so workers can plan their lives and earn stable incomes, but Starbucks chose to ignore these rights and prioritize their own bottom line,” New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga said. “All workers deserve to be treated with dignity, and we are proud to stand up for our neighbors when a multibillion-dollar company like Starbucks chooses to systematically violate their employees’ rights.”

An DCWP investigation into Starbucks began in 2022 after they received hundreds of complaints from employees over working conditions, cutting hours, scheduling and not being able to pick up extra hours.

The DCWP found that most Starbucks employees in New York City never received regular schedules, making it difficult for workers to plan other commitments, such as child care, education, or second jobs. Starbucks also routinely and unlawfully reduced employees’ hours by more than 15 percent.

“It does not matter how big your business is or how much money your company makes, if you violate our workers’ rights, you will pay the price,” Adams said. “With this landmark settlement, we’ll put tens of millions of dollars back into the pockets of hard-working New Yorkers and reinforce every New Yorker’s right to a reliable schedule, full hours, and basic dignity. We’ll make sure that New York City remains a place where employees are treated fairly, and working-class people can still get ahead.”

The settlement also carves out claims related to layoffs following Starbucks’ recent closures of New York City stores.

Under the Fair Workweek Law, fast food employers in New York City must give workers regular schedules, work schedules 14 days in advance that are consistent with the regular schedule, premium pay for schedule changes, the opportunity to decline to work additional time, and the opportunity to work newly available shifts before hiring new workers.

"Baristas are what keep Starbucks running. From Astoria to South Slope, we are the ones who create the warm, welcoming environment Starbucks advertises. When this company cuts our hours, under staffs our stores, and busts our union, it makes it harder for us to do our job and create that great experience for customers,” Kai Fritz, barista, said. “This settlement is a step in the right direction. It shows the power baristas have when we stand together and demand change. We are continuing to fight back against Starbucks’ greed and will not stop until we have a fair contract that ensures the support and protections we need to thrive.”