Starbucks will pay a total of $38.9 million to more than 15,000 New York City workers after city officials concluded the coffee chain violated the city’s Fair Workweek law by denying employees stable schedules and cutting hours without warning.

The agreement, announced Monday by the NYC Department of Consumer and Worker Protection, includes $35.5 million in restitution to current and former hourly Starbucks workers and $3.4 million in civil penalties. The company also agreed to comply with the Fair Workweek law going forward. Most hourly employees will receive $50 for every week worked between July 2021 and July 2024. Workers who experienced violations after July 2024 may still qualify for compensation by filing a complaint with the city.

The settlement also requires that NYC employees laid off during recent store closures be given opportunities for reinstatement at other Starbucks locations.

New York City launched its investigation in 2022 after receiving dozens of worker complaints tied to multiple Starbucks stores. The probe eventually expanded to the company’s hundreds of NYC locations and uncovered widespread violations:

• Workers rarely received stable, predictable schedules
   
• Starbucks routinely cut employees’ hours by more than 15%
   
• Employees were often denied opportunities to pick up extra shifts
   
• Many workers were kept involuntarily at part-time levels, affecting income reliability

City officials said these practices prevented employees from planning childcare, schooling, or second jobs; the exact harm the Fair Workweek law is designed to prevent. Starbucks spokesperson Jaci Anderson said the company remains committed to operating responsibly and complying with local regulations but noted the complexity of New York City’s Fair Workweek statute.

“This law is notoriously challenging to manage and this isn’t just a Starbucks issue... nearly every retailer in the city faces these roadblocks,” Anderson said.The deal arrives as Starbucks Workers United continues a nationwide strike that began last month across dozens of stores, signaling ongoing tension between the company and its unionizing workforce.

About Starbucks Corporation

Starbucks Corporation (NASDAQ: SBUX) is a global coffeehouse and roastery company founded in 1971 in Seattle, Washington. The company operates over 38,000 stores worldwide and is known for its handcrafted beverages, premium coffee products, and expansive retail footprint. Starbucks employs hundreds of thousands of workers globally and operates company-owned and licensed stores across North America, Europe, Asia, Latin America, and the Middle East.

At the time of publishing, Stocks.News holds positions in Starbucks as mentioned in the article.