Starbucks to pay workers $35 million in NYC's biggest-ever labor law settlement

Starbucks has agreed to a settlement of over $38 million with New York City. This agreement comes after accusations of violating the city's Fair Workweek Law. An investigation by the NYC Department of Consumer and Worker Protection led to this settlement. It is the largest worker protection settlement in the city's history. Approximately $35 million will be distributed to over 15,000 New York City baristas. These baristas alleged issues with unstable schedules and arbitrary hour reductions. Starbucks will also pay around $3.4 million in civil penalties to the city. Mayor Eric Adams emphasized that businesses must respect workers' rights. This settlement occurred as labor advocates, including Mayor-elect Zohran Mamdani and Senator Bernie Sanders, support striking Starbucks employees. Starbucks stated their commitment to compliance with local laws, though they noted the law's complexity.