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Starbucks Reaches $35 Million Settlement Over Worker Scheduling Violations
Starbucks has agreed to pay over **$35 million** to more than **15,000 hourly workers** in New York City, resolving claims that the company denied them stable schedules and arbitrarily reduced their hours in violation of local labor laws, officials announced Monday.
Largest Worker Protection Settlement in NYC History
The settlement-the **largest of its kind** in the city's history-stems from a **2022 investigation** by the New York City Department of Consumer and Worker Protection (DCWP). The probe, triggered by worker complaints, found **over 500,000 violations** of the city's **Fair Workweek Law** between **July 2021 and July 2024**, according to Commissioner Vilda Vera Mayuga.
Under the agreement, eligible employees will receive **$50 for each week worked** during the three-year period. The law requires fast-food employers to provide predictable schedules and opportunities for additional shifts.
"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," Mayuga said in a statement.
Starbucks Acknowledges Compliance Challenges
Starbucks, which called New York's worker protection laws "**complex**," maintained that the settlement addresses **legal compliance**, not unpaid wages. The company stated it remains "**committed to creating the best job in retail**" and has pledged **$500 million** to improve staffing and training nationwide.
"We support the intent of the law and remain committed to compliance, but its complexity creates real-world challenges," a Starbucks spokesperson said.
Broader Labor Struggles Persist
The settlement comes as Starbucks grapples with **ongoing labor disputes**, including a **union-led strike** now spanning **120 stores in 85 cities**. Workers represented by **Starbucks Workers United** are demanding **higher pay, better staffing, and union protections** after negotiations stalled.
Kai Fritz, a union barista, called the settlement "**a step in the right direction**" but noted that understaffing and hour cuts continue to hinder workers. "When this company cuts our hours, understaffs our stores, and busts our union, it makes it harder for us to do our job," Fritz said.
"For too long, Starbucks has acted with impunity: manipulating schedules, disrespecting workers, and ignoring legal protections," said Lynne Fox, president of Workers United.
Mayor Hails 'Landmark' Agreement
New York City Mayor **Eric Adams** praised the deal as a "**landmark settlement**" that would **restore millions to workers** while reinforcing their right to **reliable schedules and fair treatment**. The company must now comply with NYC's scheduling laws moving forward.
Context: Sales Recovery Amid Labor Turmoil
Starbucks, led by CEO **Brian Niccol**, reported a **1% global sales increase** in October-its first quarterly growth in nearly two years. However, U.S. sales remained **flat**, and the company faces **consumer boycotts, pricing backlash, and union tensions** that threaten its recovery.
The union, which has won elections at **5% of company-owned U.S. stores** since 2021, continues to push for contracts guaranteeing **job protections and wage hikes**.
