Starbucks to pay NYC workers $35 million in labour law settlement
Starbucks has agreed to pay more than $35 million to thousands of its New York City workers after the city accused the coffee giant of breaking labour laws related to fair scheduling.
According to officials, over 15,000 hourly employees will receive $50 for every week they worked between July 2021 and July 2024. The settlement aims to compensate workers who said their hours were cut or their schedules changed without proper notice.
Vilda Vera Mayuga, Commissioner of the NYC Department of Consumer and Worker Protection, explained that Starbucks allegedly violated the city’s Fair Workweek Law, which requires predictable schedules, advance notice, and fair treatment for fast-food workers.
The city’s investigation began in 2022 after dozens of employee complaints. It quickly expanded to include every Starbucks location in New York City. Officials say the company committed more than 500,000 violations, making this the largest worker-protection settlement in NYC history.
Starbucks maintains that it wants to offer “the best job in retail” and says it plans to invest $500 million into staffing improvements and training. The company also says New York’s labor laws are “complex” but insists it supports the intent of the regulations.
NYC Mayor Eric Adams called the settlement “landmark,” saying it will return millions of dollars to workers and reinforce the right to stable schedules and fair treatment.
Even as Starbucks reports slight improvements in global sales, it continues to face strong pressure from workers nationwide. The company is locked in a long-running dispute with Starbucks Workers United, a union pushing for better pay, staffing levels, and job protections.
In recent weeks, unionized workers have launched strikes across more than 120 stores in 85 cities, demanding a fair contract. Many baristas say unstable schedules and reduced hours make it difficult to do their jobs well.
Union leaders welcomed the NYC settlement, calling it an important step toward holding Starbucks accountable.
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