Record payout for former and current employees after company breached city’s ‘fair workweek’ rules
Starbucks will be paying more than $35 million to thousands of New York City baristas and shift workers after the city accused the coffee chain of systematically violating local labor laws on predictable scheduling and cutting hours. The settlement, announced Monday by New York City officials, is the largest worker‑protection settlement in the city’s history and marks a major victory for advocates pushing stricter enforcement of “fair workweek” rules.
Under the deal, more than 15,000 current and former hourly workers are expected to receive $50 for every week they worked between July 4, 2021 and July 7, 2024, city officials and Starbucks announced to the media. The agreement follows a multi‑year investigation into Starbucks’ scheduling practices across its New York City stores and comes as the company faces a prolonged national labor fight and an ongoing strike at more than 120 locations.
Alongside the worker compensation, Starbucks has also agreed to change its scheduling practices in the city to comply with New York’s Fair Workweek Law going forward, a requirement that city officials say is central to the deal and future enforcement, Reuters reported.
New York City’s Department of Consumer and Worker Protection (DCWP) opened a formal probe into Starbucks in 2022 after receiving dozens, and eventually hundreds, of worker...
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