Starbucks has agreed to pay over $35 million to thousands of workers in New York City, resolving claims that the coffee chain violated local labour laws by providing unstable schedules and arbitrarily cutting hours. The settlement covers more than 15,000 hourly employees, who will receive $50 for each week worked between July 2021 and July 2024.
Vilda Vera Mayuga, commissioner of the New York City Department of Consumer and Worker Protection, cited repeated violations of the city’s Fair Workweek Law, which mandates predictable schedules for employees. “All workers deserve to be treated with dignity,” Mayuga said, describing the settlement as the largest in New York City’s worker protection history.
Under the agreement, Starbucks must comply with city labour laws going forward, ensuring employees receive regular schedules and opportunities for additional shifts. Starbucks acknowledged the complexity of the regulations but emphasized its commitment to legal compliance and improving working conditions. The company has also announced plans to invest $500 million in staffing and training across its coffeehouses.
The settlement follows a 2022 city investigation that began with dozens of worker complaints and expanded to all Starbucks locations in New York City. Officials found systemic violations, reporting that Starbucks breached the Fair Workweek Law over half a million times since 2021.
New York City Mayor Eric Adams called the settlement “landmark,” noting it restores tens of millions of dollars to workers’ pockets while reinforcing the right to reliable schedules and full hours.
Starbucks has been facing challenges including labour unrest, boycotts, customer backlash over prices, and leadership turbulence. Its chief executive, Brian Niccol, has focused on regaining customers by emphasizing faster service, a return to traditional coffeehouse experiences, and improved store operations.
Despite this progress, labour disputes continue. Starbucks Workers United union members recently went on strike in more than 120 stores across 85 cities to demand higher pay, better staffing, and formalised job protections. Lynne Fox, the union’s international president, said the ongoing strikes highlight “years of manipulated schedules, union-busting, and disregard for worker rights.”
Barista Kai Fritz, a union member, called the settlement “a step in the right direction,” stressing the need for fair contracts and safe working conditions. Starbucks remains engaged in negotiations with union representatives to resolve outstanding labour issues.
Erizia Rubyjeana
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