NEW YORK – Starbucks will pay approximately $35 million to over 15,000 New York City workers to resolve claims that it violated labor laws by denying stable schedules and arbitrarily cutting hours, city officials announced Monday. The settlement also includes $3.4 million in civil penalties and requires the company to follow the city’s Fair Workweek law going forward.
Under the agreement, most affected hourly employees will receive $50 for each week worked between July 2021 and July 2024. Workers who experienced violations after that period can seek compensation by filing a complaint with the city’s Department of Consumer and Worker Protection. The settlement also guarantees that employees laid off during recent store closures will have the opportunity to be reinstated at other locations. The city investigation, which began in 2022 following multiple complaints, found that many Starbucks employees lacked regular schedules, had hours cut by more than 15%, and were often denied opportunities to pick up extra shifts, making it difficult to plan finances, childcare, education, or other work commitments. The agreement comes amid a nationwide strike by Starbucks union workers at dozens of locations, with the overall impact still disputed between the company and labor organizers.