Starbucks Corporation will pay $38.9 million (all figures U.S.) to resolve widespread violations of New York City’s Fair Workweek Law, marking the largest worker protection settlement in the city’s history.
The settlement (which converts to about $54.5 million Cdn) follows a multi-year investigation by the New York City Department of Consumer and Worker Protection that found Starbucks committed over 500,000 violations of the law between July 2021 and July 2024. The investigation found the company denied thousands of workers at more than 300 locations the right to stable schedules and the opportunity to pick up additional hours.
More than 15,000 hourly Starbucks workers who worked in New York City during the three-year period will receive restitution payments totaling over $35.5 million. The company will also pay $3.4 million in civil penalties and costs.
Investigation findings
The department launched its investigation in 2022 after receiving dozens of worker complaints about several Starbucks locations. Evidence gathered from hundreds of employees and company data revealed systemic violations across all city locations.
The investigation found most Starbucks employees in New York City never received regular schedules, making it difficult to plan childcare, education or second jobs. The company also routinely reduced employees’ hours by more than 15 percent without just cause and denied workers the opportunity to pick up additional shifts while continuing to hire new workers.
Payment structure
Most employees who worked hourly positions at New York City Starbucks locations will receive $50 for each week worked from July 4, 2021 through July 7, 2024. An employee who worked continuously for 78 weeks will receive $3,900. Workers will receive checks by mail this winter.
Employees who experienced violations after July 7, 2024 may be eligible for additional compensation by filing a complaint with the department.
The settlement includes a $200,000 reserve fund for individual complainants who file substantiated complaints about violations occurring between July 8, 2024 and the settlement execution date.
Fair Workweek Law requirements
New York City’s Fair Workweek Law requires fast food employers to provide workers with regular schedules at least 14 days in advance, premium pay for schedule changes, and the opportunity to work newly available shifts before hiring new workers.
The law also prohibits employers from scheduling clopening shifts—closing followed by opening the next morning—without written consent and $100 premium pay. Employers cannot fire or reduce worker hours by more than 15 percent without just cause.
“It does not matter how big your business is or how much money your company makes, if you violate our workers’ rights, you will pay the price,” said Mayor Eric Adams in a statement.
Store closure provisions
The settlement carves out claims related to layoffs from recent Starbucks store closures in New York City. Under the law, laid-off employees have a right to reinstatement at other open locations. The department is monitoring Starbucks’ compliance with this requirement.
The department retains the right to investigate and take enforcement action for violations related to store closures that occurred on September 28, 2025 and thereafter.
Future compliance
Starbucks must produce compliance records to the department upon request in a machine-readable data format. The company has 24 months to begin maintaining certain records in this format if not currently available.
The settlement requires the company to make compliance data from all New York City fast food establishments available to the department within 14 calendar days of written request.
