Starbucks has agreed to nearly a $39 million settlement with New York City over allegations it violated the city's Fair Workweek law.
A multi-year investigation by the New York City Department of Consumer and Worker Protection claimed Starbucks violated the city's Fair Workweek Law, committing more than half a million violations since 2021.
An investigation found Starbucks illegally denied thousands of workers across more than 300 locations the right to stable and predictable schedules, as well as the right to pick up additional hours and earn more; instead, Starbucks arbitrarily cut schedules and illegally prioritized its own profits over its workers' rights.
Employees were also prevented from picking up shifts.
The coffee giant must pay more than $35.5 million in restitution to over 15,000 workers harmed by Starbucks' unlawful practices, as well as any additional workers who come forward.
The settlement also requires Starbucks to pay $3.4 million in civil penalties and costs, and requires the company to comply with the law going forward.
The DCWP began investigating Starbucks in 2022, uncovering that employees never received regular schedules, and that Starbucks routinely and unlawfully reduced employees' hours.
Most employees who worked for Starbucks in an hourly position in New York City will receive $50 for each week worked from July 4, 2021, through July 7, 2024.
A company spokeswoman said Starbucks is committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where it does business, but also noted the complexities of the city's law.
"This (law) is notoriously challenging to manage, and this isn't just a Starbucks issue, nearly every retailer in the city faces these roadblocks," spokeswoman Jaci Anderson said.
As part of the settlement, employees laid off during recent store closings in the city will get the chance for reinstatement at other company locations.
Associated Press contributed to this report
Sam Barron ✉
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