NYC’s Mayor Adams, NYC DCWP announce $38M settlement with Starbucks

New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga announced a landmark $38.9M settlement with Starbucks (SBUX) for widespread violation of the city’s Fair Workweek Law – the largest worker protection settlement in New York City history. A multi-year investigation by DCWP found that Starbucks committed more than half a million violations of the law since 2021, illegally denying 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 their own profits over their workers’ rights. The settlement announced today requires Starbucks to pay more than $35.5M 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 $3.4M in civil penalties and costs and requires the company to comply with the law going forward. “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,” said DCWP Commissioner Mayuga.