New York City officials announced on Monday that Starbucks has agreed to a 38.9 million dollar settlement after investigators found more than half a million violations of the city’s Fair Workweek Law. The agreement, which covers scheduling abuses dating back to 2021, is one of the largest worker protection settlements ever reached in the city.
More than 15,000 current and former Starbucks employees are expected to receive restitution under the settlement. Investigators found that the company regularly failed to provide predictable work schedules, reduced employee hours without proper notice, and made scheduling changes that left workers struggling to maintain stable incomes.
Mayor Eric Adams said the settlement underscores the city’s commitment to workers’ rights and fair working conditions. In a statement, he noted that the agreement would return tens of millions of dollars to baristas who have long complained about erratic schedules and shrinking hours.
The Fair Workweek Law, approved by the City Council in 2017, requires fast food employers to give workers regular schedules that remain consistent from week to week. Employers must provide schedules at least 14 days in advance and cannot reduce hours by more than 15 percent without a justifiable business reason.
City officials say Starbucks violated these rules hundreds of thousands of times across more than 300 locations. Workers have for years accused the company of cutting hours and giving inconsistent shifts that made it difficult to plan for childcare, transportation, or a second job.
Starbucks said in a statement that the violations were related to compliance issues within a complex regulatory system rather than intentional efforts to deny employees wages or benefits. The company emphasized its commitment to improving its scheduling processes and providing additional training for store managers.
The settlement comes during heightened labor tensions nationwide. In recent weeks, unionized Starbucks workers in several cities have staged strikes as they push for clearer scheduling rules, stronger protections, and progress in stalled contract negotiations.
With this agreement, New York City reinforces its role as a national leader in worker protection enforcement, sending a clear message that large employers are expected to follow local labor laws and maintain fair working conditions for their employees.
