Starbucks Brews $38.9 Million Settlement Over Worker Scheduling in NYC

new York, NY – December 1, 2025 – Starbucks will pay a ample $38.9 million to over 15,000 New York City workers to resolve allegations of unfair scheduling practices and arbitrary hour cuts, city officials announced today. Teh settlement, reached with the city’s Department of Consumer and Worker Protection (DCWP), marks the largest worker protection settlement in the city’s history.

The investigation, launched in 2022 following a surge of worker complaints, revealed systemic issues with scheduling stability at hundreds of Starbucks locations across the five boroughs.The DCWP found that a vast majority of hourly employees lacked consistent schedules and frequently experienced reductions in their weekly hours exceeding 15%. This unpredictability created important hardship for workers attempting to manage personal commitments like childcare,education,and secondary employment.

“New Yorkers deserve predictable schedules and fair treatment in the workplace,” stated a spokesperson for Mayor Adams.”This settlement sends a clear message that we will vigorously enforce our Fair Workweek law and protect the rights of all workers.”

Under the terms of the agreement, most affected employees will receive $50 for each week worked between July 2021 and July 2024. Workers who experienced violations after July 2024 are eligible to file a claim with the DCWP for potential compensation. Furthermore, the settlement guarantees reinstatement opportunities at other company locations for employees impacted by recent store closures in the city.

Starbucks will also pay $3.4 million in civil penalties and commit to full compliance with the city’s Fair workweek law, designed to provide fast-food and retail workers with more predictable schedules and protections against erratic hour changes.

While acknowledging the complexities of the city’s regulations, a Starbucks spokesperson, Jaci Anderson, affirmed the company’s commitment to responsible operations and adherence to local laws. “This law is notoriously challenging to manage and this isn’t just Starbucks’ issue,nearly every retailer in the city faces these roadblocks,” Anderson stated.

The settlement arrives amidst a continuing nationwide strike by the Starbucks Workers United union, impacting dozens of locations and highlighting ongoing labor disputes within the company. This latest advancement adds another layer to the complex relationship between Starbucks and its workforce as the company navigates evolving labor laws and unionization efforts.

The DCWP encourages any affected Starbucks worker to visit https://www.nyc.gov/site/dca/workers/workersrights/fastfood-retail-workers.page for more information on filing a claim and understanding their rights.

What specific provisions of the NYC Fair Workweek Law where allegedly violated by Starbucks?

Starbucks Agrees to $35 Million Settlement for Over 15,000 NYC Workers in Wage Dispute

Details of the NYC Wage Settlement

Starbucks has reached a notable agreement to settle a wage dispute with over 15,000 current and former New York City baristas and other employees for $35 million. This settlement, finalized in late 2025, resolves claims that Starbucks violated New York City law regarding predictable scheduling and pay transparency. The lawsuit alleged issues with “on-call” scheduling practices and insufficient notice of work schedules,impacting employees’ ability to maintain consistent income and work-life balance.

* Settlement Amount: $35 million

* Affected Employees: Over 15,000 NYC Starbucks workers (current and former)

* Key Allegations: Violations of NYC’s Fair Workweek law, specifically regarding on-call scheduling and schedule predictability.

* Legal Basis: The lawsuit centered around the NYC fair Workweek Law,designed to protect retail and fast-food workers.

Understanding the NYC Fair Workweek Law

The NYC Fair Workweek Law,enacted in 2017 and amended several times since,aims to provide greater stability and predictability for hourly workers in the retail and fast-food industries. Key provisions relevant to the Starbucks settlement include:

1. Advance Notice of Schedules: Employers must provide employees with their work schedules at least 14 days in advance.
2. On-Call Scheduling Restrictions: Limitations on “on-call” scheduling,where employees are required to be available to work without a guaranteed number of hours.
3. Premium Pay for Schedule changes: Requirements for premium pay when schedules are changed with little notice.
4. Right to Request Schedule Changes: Employees have the right to request changes to their schedules.

These regulations were designed to address the challenges faced by hourly workers who frequently enough struggle with unpredictable income and difficulty managing personal commitments due to last-minute schedule changes. The Starbucks case highlights the importance of compliance with these laws.

Impact on Starbucks Employees: What workers Receive

The $35 million settlement will be distributed among the affected Starbucks employees based on the number of hours they worked during the relevant period (primarily 2018-2023). The exact amount each worker receives will vary, but the settlement aims to compensate them for lost wages and damages resulting from the alleged scheduling violations.

* Distribution Method: Based on hours worked during the class period (2018-2023).

* Compensation Focus: Lost wages, damages related to unpredictable scheduling, and potential penalties.

* Individual amounts: Vary depending on individual work history.

* Claim filing: Affected employees were required to submit claims to receive their portion of the settlement.

Starbucks’ Response and Future Compliance

Starbucks has stated that while they believe they complied with the law, they chose to settle the case to avoid the costs and disruptions of prolonged litigation. The company has also emphasized its commitment to providing a positive work environment for its employees.

Following the settlement, Starbucks has indicated it will review and reinforce its scheduling practices in New York City to ensure full compliance with the Fair Workweek Law. This includes:

* Enhanced Training: Providing additional training to managers on scheduling regulations.

* Improved Scheduling Software: Utilizing scheduling software that facilitates compliance with advance notice requirements.

* Increased Transparency: Improving communication with employees regarding scheduling changes.

Broader Implications for the Restaurant and Retail Industry

The Starbucks settlement serves as a cautionary tale for other employers in the restaurant and retail industries, particularly those operating in cities with similar fair workweek laws. It underscores the importance of:

* Proactive Compliance: staying informed about and adhering to local labor laws.

* Accurate Recordkeeping: maintaining accurate records of employee hours and schedules.

* Clear Communication: Communicating scheduling information clearly and transparently to employees.

* Legal Counsel: Seeking legal counsel to ensure compliance with complex labor regulations.

This case is likely to encourage more workers to come forward with claims of wage and hour violations, perhaps leading to further litigation and settlements in the future. The trend towards greater worker protections and schedule predictability is expected to continue.

Starbucks Financial Performance (Recent Data)

While not directly related to the settlement, understanding Starbucks’ financial position provides context. As of September 29, 2019, Starbucks reported a revenue of $26.5 billion USD [1]. This demonstrates the company’s significant financial resources, making the $35 million settlement, while substantial, manageable. current financial data (as of late 2025) indicates continued growth, though impacted by ongoing economic factors and labor costs.

Resources for Employees & Employers

* NYC Department of Labor Standards: https://www1.nyc.gov/site/dol/index.page

* Fair Labor Standards Act (FLSA): [[