New York City, December 2, 2025
Starbucks has agreed to a $38.9 million settlement over violations of New York City’s Fair Workweek Law, marking a significant step in labor law enforcement. This landmark decision follows an investigation revealing over 500,000 violations across more than 300 locations, affecting over 15,000 workers. The settlement will provide restitution to these employees while underscoring ongoing challenges in labor relations as unionized workers continue to strike for better working conditions. The Fair Workweek Law aims to ensure predictable schedules and fair treatment of fast food employees in the city.
New York City, NY
Starbucks Reaches $38.9 Million Settlement Over Labor Violations
Settlement Highlights Significant Labor Law Enforcement
Starbucks has agreed to a $38.9 million settlement with New York City officials, a landmark decision addressing claims of the company’s violations of the city’s Fair Workweek Law. This settlement marks the largest worker protection settlement in New York City’s history and underscores the importance of maintaining robust labor laws that protect workers while considering the operational realities of running a business.
The New York City initiative, aimed at fostering consistent working conditions in fast food establishments, exemplifies the balance needed between regulatory measures and the flexibility companies require to operate effectively in a competitive market.
Extent of Violations and Settlement Terms
The investigation, initiated in 2022, revealed that Starbucks committed over 500,000 violations of the Fair Workweek Law across more than 300 locations in the city. Findings included the company’s regular failure to provide stable work schedules, arbitrary reductions of hours beyond 15%, and unjustly denying employees the chance to pick up additional shifts, perpetuating their part-time status.
As part of the settlement, Starbuck will pay more than $35.5 million in restitution to over 15,000 affected workers. Each eligible employee will receive $50 for each week worked between July 2021 and July 2024. Furthermore, Starbucks will be liable for $3.4 million in civil penalties and has pledged compliance with the Fair Workweek Law going forward.
Broader Context: Ongoing Employee Strikes
This settlement emerges during a period of unrest, as Starbucks’ unionized workers continue to strike nationwide, demanding better staffing and more consistent hours. Notably, nearly four years have passed since the first store voted to unionize in Buffalo, leaving many employees feeling uncertain about their futures at the company.
The situation highlights the tensions that can arise between large corporations and their workers, emphasizing the need for ongoing dialogue and potential reform to ensure both employee satisfaction and business sustainability.
Understanding the Fair Workweek Law
Enacted in 2017, New York City’s Fair Workweek Law is designed to provide fast food workers with predictable schedules and other labor protections. This includes mandates for employers to provide work schedules 14 days in advance, consistency with regular scheduling practices, premium pay for sudden schedule changes, and the opportunity for workers to pick up shifts before new staff are hired.
The law also restricts employers from scheduling “clopening” shifts without written consent from employees and mandates that any significant reduction in hours or termination must be justified.
Commitment to Responsible Operations
Starbucks has expressed its intent to support the objectives of the Fair Workweek Law while highlighting the challenges posed by operational necessities that require flexibility in scheduling. The company remains committed to operating efficiently and responsibly while complying with all local laws and regulations.
This case serves as a reminder of the delicate balance between ensuring fair labor standards and fostering an environment where businesses can thrive and innovate.
Conclusion: Moving Forward Together
The $38.9 million settlement between Starbucks and New York City reflects a crucial step toward enforcing labor laws that protect workers’ rights while also highlighting the need for operational flexibility in business. As New York continues to prioritize both worker protections and business growth, community support for local establishments remains vital to fostering entrepreneurship and economic resilience.
As the landscape of employment and labor continues to evolve, staying informed about changes and participating in dialogues around policy can help enhance the overall economic health of New York City.
Frequently Asked Questions (FAQ)
What is the Fair Workweek Law?
The Fair Workweek Law, enacted in 2017, requires fast food employers in New York City to provide workers with regular schedules, work schedules 14 days in advance that are consistent with the regular schedule, premium pay for schedule changes, the opportunity to decline to work additional time, and the opportunity to work newly available shifts before hiring new workers. Fast food employers also cannot schedule a “clopening” shift (a closing shift one night, followed by an opening shift the very next morning) unless the worker consents in writing and receives a $100 premium to work the shift. Additionally, these fast food employers cannot fire or reduce the hours of a worker by more than 15 percent without just cause and must reinstate laid-off workers at their other locations.
How many workers are affected by this settlement?
Over 15,000 workers employed at more than 300 Starbucks locations in New York City between July 2021 and July 2024 are affected by this settlement.
What compensation will the affected workers receive?
Each eligible employee will receive $50 for each week worked between July 2021 and July 2024. For example, an employee who worked for Starbucks continuously for a year and a half (78 weeks) will receive $3,900.
What is the total amount of the settlement?
The total settlement amount is $38.9 million, which includes $35.5 million in restitution to affected workers and $3.4 million in civil penalties.
What is the status of the ongoing strikes by Starbucks workers?
The settlement coincides with ongoing nationwide strikes by Starbucks’ unionized workers, who are demanding better staffing and consistent hours. The company has yet to negotiate a contract nearly four years after the first store voted to unionize in Buffalo.
Key Features of the Settlement
| Feature | Details |
|---|---|
| Total Settlement Amount | $38.9 million |
| Restitution to Affected Workers | $35.5 million |
| Civil Penalties | $3.4 million |
| Number of Affected Workers | Over 15,000 |
| Compensation per Week Worked | $50 |
| Period Covered by Settlement | July 2021 to July 2024 |
| Guarantee for Laid-Off Employees | Opportunity for reinstatement at other Starbucks locations |
Now Happening on X
- @Law360 (December 2, 2025): Starbucks agreed to pay nearly $39 million following a New York City probe for violating the Fair Workweek Law. View on X
- @NEWSMAX (December 2, 2025): Starbucks has agreed to nearly a $39 million settlement with New York City over allegations it violated the city’s Fair Workweek law. View on X
- @eschisgall (December 1, 2025): Starbucks reached a $39.8 million settlement with New York City to resolve claims of violating the Fair Workweek Law, paying restitution to over 15,000 NYC-based hourly workers. View on X
- @NYCMayor (December 1, 2025): Starbucks violated the Fair Workweek Law, denying thousands of employees predictable schedules and additional shifts; the settlement returns money to workers regardless of business size. View on X
- @bradlander (December 1, 2025): Starbucks cheated 15,000 baristas under the Fair Workweek Law by not providing stable schedules; the settlement ensures they get paid, crediting the 2017 law passed by NYCCouncil. View on X
- @SBWorkersUnited (December 1, 2025): NYC DCWP found Starbucks violated Fair Workweek Laws 500,000 times, putting $35.5 million back into workers’ pockets; joined by Zohran Mamdani and Sen. Sanders on the picket line. View on X
- @pycior (December 1, 2025): Investigators documented over half a million violations of NYC’s Fair Workweek Law by Starbucks, crediting the DCWP team. View on X
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