By: Julie Li
In a landmark victory for labor protections, New York City Mayor Eric Adams and the Department of Consumer and Worker Protection (DCWP) announced a $38 million settlement with Starbucks, marking the largest worker-protection settlement ever secured in the city! The agreement resolves allegations that the coffee chain repeatedly violated New York City’s Fair Workweek Law. This law grants fast-food and retail employees predictable scheduling, access to premium pay, and protections against last-minute shift changes.
According to the DCWP investigation, Starbucks engaged in widespread scheduling practices that conflicted with the law: they failed to provide written work schedules in advance, resulting in unauthorized shift changes, and did not offer additional hours to existing employees before hiring new staff. These violations affected thousands of workers that worked in Starbucks in New York City.
The settlement announced that Starbucks is required to pay more than $35.5 million in restitution to over 15,000 workers harmed by Starbucks’ unlawful practices, as well as to any additional workers who come forward. The settlement also requires Starbucks to pay $3.4 million in civil penalties and requires the company to comply with the law going forward. With today’s settlement, the Adams administration has now secured nearly $90 million in worker relief from different companies, ensuring that New York workers get every dollar they have earned.
Mayor Adams remarked how, “It does not matter how big your business is or how much money your company makes. If you violate our workers’ rights, you will pay the price. With this landmark settlement, we’ll put tens of millions of dollars back into the pockets of hard-working New Yorkers and reinforce every New Yorker’s right to a reliable schedule, full hours, and basic dignity. We’ll make sure that New York City remains a place where employees are treated fairly and working-class people can still get ahead.” He emphasized that through the agreement, the city must always stand up for working people and how no corporation, no matter how large, is above the law.
DCWP Commissioner Mayuga explained in a statement that “The city’s Fair Workweek Law provides workers with vital protections, like the right to a predictable schedule so workers can plan their lives and earn stable incomes, but Starbucks chose to ignore these rights and prioritize their own bottom line.” Mayuga reassured that from this point on, all workers will be treated with dignity, ensuring others have no fear when standing up to multibillion-dollar companies like Starbucks.
Starbucks still hasn’t admitted their wrongdoing but has agreed to cooperate fully with the ongoing compliance monitoring. The company states that they will support its workers and align schedules with city regulations, such as the Fair Workweek Law, to stabilize wages and working conditions for fast-food and retail employees and enforce worker protections.
With the $38 million settlement now finalized, advocates view the case as a milestone that signals stronger future accountability for corporations operating in New York City. Labor groups have expressed hope that the agreement will embolden workers to report violations and reinforce the city’s position as a national leader in labor rights enforcement.