'Vital protections' | Starbucks will pay workers $38.9m to settle labor law violations

Starbucks will distribute $35.5million to more than 15,000 New York City employees following a ruling that the company committed over 500,000 breaches of the city’s Fair Workweek Law.

Regulators also imposed $3.4million in civil penalties after determining that baristas across 300 stores did not receive predictable schedules or the opportunity to take additional shifts, leaving many stuck in part-time roles.

The New York City Department of Consumer and Worker Protection (DCWP) said most baristas will receive $50 for each week worked from July 2021 through July 2024. Workers who believe violations occurred after that period can still claim compensation by filing a complaint with the agency. The settlement also grants reinstatement rights for city workers laid off as a result of store closures.

The agreement is the largest worker protection settlement in New York City’s history and arrived hours before Mayor-elect Zohran Mamdani and US Senator Bernie Sanders appeared at a picket line outside a Starbucks site in Brooklyn.