Starbucks has reached a $38.9 million settlement with the New York City Department of Consumer and Worker Protection (DCWP) after an investigation found widespread violations of the city’s Fair Workweek Law. Mayor Eric Adams announced the agreement Monday, calling it the largest worker protection settlement in city history.
The DCWP investigation revealed that Starbucks regularly cut employees’ hours, failed to provide predictable schedules, and denied workers the chance to pick up extra shifts at more than 300 locations. The probe documented over 500,000 violations from July 2021 through July 2024, affecting more than 15,000 hourly workers.
Under the settlement, Starbucks will pay over $35.5 million in restitution to affected employees, with an additional $3.4 million in fines and penalties. Eligible workers will receive $50 for each week worked during the covered period. An employee who worked continuously for a year and a half could receive nearly $3,900. The announcement also notes that employees laid off during recent store closures are entitled to reinstatement at other locations.
Mayor Adams emphasized the impact of the agreement, noting, “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. 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.”
The investigation began in 2022 following complaints from Starbucks employees. DCWP found that most workers never received consistent schedules, frequently faced reductions exceeding 15 percent of their hours, and were unable to plan for childcare, education, or additional employment.
Starbucks acknowledged the settlement, emphasizing that the violations were “about compliance, not unpaid wages.” The company added that the law is complex, and minor schedule changes can create potential violations, making adherence challenging across its locations.
The settlement provides financial relief to thousands of workers and underscores the city’s enforcement of labor protections under the Fair Workweek Law.
