Starbucks Agrees to $38.9M NYC Fair Workweek Settlement

New York City officials announced on Monday that Starbucks has agreed to a $38.9 million settlement to resolve allegations of widespread violations of the city's Fair Workweek Law, marking the largest worker protection agreement in the city's history. The deal, which stems from a three-year investigation into scheduling practices at more than 300 Starbucks locations, will provide restitution to over 15,000 affected hourly workers and impose civil penalties on the company.

The investigation by the Department of Consumer and Worker Protection began in 2022 following dozens of complaints from Starbucks employees about inconsistent schedules and reduced hours. Officials found more than 500,000 violations since July 2021, including failures to provide stable schedules at least 14 days in advance, unauthorized reductions in workers' hours by more than 15 percent, and denying existing employees the first opportunity to pick up additional shifts. These practices, prohibited under the 2017 Fair Workweek Law aimed at protecting fast-food and retail workers, made it difficult for employees to plan childcare, education, or secondary jobs, often leaving them in involuntary part-time roles...