Starbucks Settles NYC Scheduling Violations for $38.9M

New York City officials announced on Monday that Starbucks has agreed to pay approximately $35 million to more than 15,000 current and former hourly workers in the city to resolve allegations that the company violated local labor laws by providing unstable schedules and arbitrarily reducing their hours. The total settlement amounts to $38.9 million, including an additional $3.4 million in civil penalties to the city's Department of Consumer and Worker Protection. As part of the agreement, Starbucks commits to full compliance with the city's Fair Workweek law, which requires employers to provide advance notice of work schedules and limits sudden changes to hours.

The investigation by the Department of Consumer and Worker Protection began in 2022 following dozens of complaints from employees at various Starbucks locations. It expanded to cover hundreds of stores across the city, revealing widespread issues. According to the department, most affected workers did not receive regular schedules, and the company frequently cut hours by more than 15 percent without sufficient notice. These practices made it challenging for employees to predict their earnings or arrange personal...