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Starbucks has agreed to pay over $38 million in a settlement with New York City for violating labor laws at more than 300 locations. The settlement, announced by Mayor Eric Adams on Monday, is the largest worker protection settlement in the city's history. It affects 15,000 Starbucks employees who had their schedules and hours cut without notice between 2021 and 2024.
The New York City Department of Consumer and Worker Protection conducted a multi-year investigation, uncovering more than 500,000 violations of the Fair Workweek Law. The law requires predictable schedules and prohibits arbitrary cuts to workers' hours. Starbucks will pay $35.5 million in restitution to affected workers, with most receiving $50 for each week worked during the specified period. An additional $3.4 million will cover civil penalties and costs.
Mayor Adams emphasized the importance of the settlement, stating, "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." The settlement ensures Starbucks must comply with the law going forward.
The DCWP's investigation began in 2022 after receiving numerous complaints from workers. They found that Starbucks employees often lacked regular schedules, making it difficult to plan for childcare, education, or second jobs. The company also unlawfully reduced hours and denied opportunities for additional shifts.
According to DCWP Commissioner Vilda Vera Mayuga, "All workers deserve to be treated with dignity, and we are proud to stand up for our neighbors when a multibillion-dollar company like Starbucks chooses to systematically violate their employees’ rights."
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