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The agreement comes as Starbucks’ union continues a nationwide strike at dozens of locations that began last month
Via AP news wireMonday 01 December 2025 20:42 GMT
CloseStarbucks baristas hit the picket lines
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Starbucks is set to pay approximately $35 million to more than 15,000 New York City employees following claims the coffee giant denied them stable schedules and arbitrarily reduced their working hours, city officials announced Monday.
Under the agreement with the city's Department of Consumer and Worker Protection, Starbucks will also incur $3.4 million in civil penalties. The company has further committed to adhering to the city's Fair Workweek law moving forward.
A spokeswoman for Starbucks stated the company is dedicated to operating responsibly and in compliance with all local laws and regulations across its markets. However, she also highlighted the complexities of the New York City legislation.
“This (law) is notoriously challenging to manage and this isn’t just Starbucks issue, nearly every retailer in the city faces these roadblocks,” said spokeswoman Jaci Anderson.
STARBUCKS-HUELGA (AP Photo/Ashley Landis, archive)Most of the affected employees who held hourly positions will receive $50 for each week worked from July 2021 through July 2024, the department said. Workers who experienced a violation after that may be eligible for compensation by filing a complaint with the department.
The $38.9 million settlement also guarantees employees laid off during recent store closings in the city will get the chance for reinstatement at other company locations.
The city began investigating in 2022 after receiving dozens of worker complaints against several Starbucks locations, and eventually expanded its investigation to the hundreds of stores in the city. The probe found most Starbucks employees never got regular schedules and the company routinely reduced employees’ hours by more than 15%, making it difficult for staffers to know their regular weekly earnings and plan other commitments, such as child care, education or other jobs.
The company also routinely denied workers the chance to pick up extra shifts, leaving them involuntarily in part-time status, according to the city.
The agreement with New York comes as Starbucks’ union continues a nationwide strike at dozens of locations that began last month. The number of affected stores and the strike's impact remain in dispute by the two sides.
