NEW YORK (WPIX) – Starbucks has agreed to pay $35 million to New York City Starbucks workers to settle claims that it violated the city’s Fair Workweek Laws by cutting their hours or providing unpredictable schedules, officials announced Monday.
The coffee company will shell out $50 for every week the 15,000 hourly employees worked from July 4, 2021, through July 7, 2024, according to Mayor Eric Adams. Employees will receive a check in the mail this winter.
“The city’s Fair Workweek Law provides workers with vital protections, like the right to a predictable schedule so workers can plan their lives and earn stable incomes, but Starbucks chose to ignore these rights and prioritize their own bottom line,” New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga said. “All workers deserve to be treated with dignity, and we are proud to stand up for our neighbors when a multibillion-dollar company like Starbucks chooses to systematically violate their employees’ rights.”
The DCWP began investigating Starbucks in 2022 after hundreds of employees citywide complained about working conditions. The probe found that the coffee chain committed more than half a million violations, including failing to give workers stable schedules and the opportunity to pick up extra hours, officials said.
Under the Fair Workweek Law, fast food employers must provide employees with their work schedules 14 days in advance and give premium pay for schedule changes. Workers have the right to turn down more hours before the company hires new workers, officials said.
“Baristas are what keep Starbucks running. From Astoria to South Slope, we are the ones who create the warm, welcoming environment Starbucks advertises. When this company cuts our hours, understaffs our stores, and busts our union, it makes it harder for us to do our job and create that great experience for customers,” said Kai Fritz, a Starbucks barista. “This settlement is a step in the right direction. It shows the power baristas have when we stand together and demand change.”
The company will also pay an additional $3.4 million in civil penalties.
The Starbucks workers’ union is entering its third week of strikes nationwide, including New York City. The strike was intended to disrupt Starbucks’ Red Cup Day, which is typically one of the company’s busiest days of the year. Since 2018, Starbucks has given out free, reusable cups on that day to customers who buy a holiday drink.
Starbucks did not immediately respond a request for comment from Nexstar’s WPIX.