Starbucks to Pay $35 Million to NYC Workers Over Scheduling Violations
Starbucks has agreed to pay approximately $35 million to over 15,000 New York City employees to settle claims it violated local labour laws by denying stable schedules and arbitrarily cutting hours. The settlement, announced by city officials on Monday, includes an additional $3.4 million in civil penalties.
Key Details of the Settlement
- Total Payout: $38.9 million ($35M to workers + $3.4M in penalties).
- Affected Workers: More than 15,000 hourly employees in NYC.
- Compensation: Most eligible workers will receive $50 for each week worked between July 2021 and July 2024.
- Future Compliance: Starbucks agrees to comply with NYC’s Fair Workweek law moving forward.
- Reinstatement: Employees laid off during recent store closures are guaranteed a chance for reinstatement at other locations.
What the Investigation Found
The New York City Department of Consumer and Worker Protection began its probe in 2022 after receiving dozens of complaints. The investigation expanded to cover hundreds of city stores.
Officials found that most Starbucks employees did not receive regular schedules. The company routinely cut workers’ hours by more than 15%, making it difficult for them to predict earnings and plan for commitments like childcare, education, or second jobs.
Additionally, the company regularly denied workers the opportunity to pick up extra shifts, leaving them involuntarily in part-time status.
Starbucks’ Response
Starbucks spokeswoman Jaci Anderson stated the company is committed to operating responsibly and complying with local laws. However, she noted the complexity of NYC’s regulations.
“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.
Broader Context
This settlement with New York City authorities comes as Starbucks’ union continues a nationwide strike that began last month at dozens of locations. The scale and impact of that ongoing labour action remain points of contention between the company and the union.
Workers who believe they experienced violations after July 2024 may be eligible for compensation by filing a complaint with the city’s Department of Consumer and Worker Protection.
