Starbucks agreed to pay $38 million to settle an investigation by the New York City labor and consumer agency that found the coffee giant committed systemic violations of local scheduling laws at its NYC locations between 2021 and 2024. The three-year probe determined that Starbucks arbitrarily cut workers’ schedules, systematically denied employees the opportunity to pick up additional shifts, and kept them involuntarily part-time.
The company agreed to pay $35.5 million to approximately 15,000 people who were employed at one of more than 300 NYC locations from July 4, 2021, until July 7, 2024. Starbucks also agreed to pay civil penalties totaling $3.4 million and comply with the law going forward.
The settlement reveals widespread violations: Starbucks systematically ignored local scheduling laws, violating them over half a million times since 2021, at all but one NYC location. The city’s Fair Workweek Law requires fast food employers to assign schedules with 14 days’ notice.
Mayor Eric Adams announced the settlement on Monday, calling it “the largest worker protection settlement in New York City history.” Starbucks failed to comply with the law, denying workers stable and predictable schedules, as well as opportunities to pick up additional shifts and earn more money. The company routinely unlawfully reduced workers’ schedules, making it difficult for employees to plan commitments.
The settlement marks a major victory for thousands of Starbucks baristas across NYC, but current and former employees may still face ongoing issues. Workers who experienced violations after July 7, 2024, may be eligible for compensation by filing a complaint with the DCWP.
DCWP officials said the government is on workers’ side, committed to holding companies accountable. The settlement comes as Starbucks workers nationwide continue their strike over wage and scheduling issues.
Source: https://www.thecity.nyc/2025/12/01/starbucks-worker-settlement-fair-workweek-schedules