NEW YORK, Dec 3, 2025: Starbucks has agreed to pay $38.9 million to settle claims by New York City regulators that it violated worker protection laws by failing to provide predictable scheduling and stable hours for thousands of baristas across the city. The agreement, announced by Mayor Eric Adams and the Department of Consumer and Worker Protection (DCWP), represents the largest worker protection settlement in the city’s history. The settlement concludes a three-year investigation that found Starbucks committed more than 500,000 violations of the city’s Fair Workweek Law at more than 300 locations.
The law, enacted in 2017, requires fast-food employers to provide predictable schedules, give advance notice of shifts, and offer additional hours to existing employees before hiring new staff. Investigators said the company routinely changed shifts without notice, reduced scheduled hours, and failed to give employees the opportunity to take on available shifts before new hires were brought in. Under the terms of the agreement, Starbucks will pay about $35.5 million in restitution to more than 15,000 current and former workers and an additional $3.4 million in civil penalties and administrative costs to the city.
Eligible hourly workers who were employed between July 4, 2021, and July 7, 2024, will receive $50 for each week worked during that period. City officials said payments will be distributed automatically to eligible workers in the coming months. The settlement also provides reinstatement opportunities for workers who lost their jobs during store closures. Officials said the agreement reinforces the city’s commitment to enforcing workplace protections and ensuring that large corporations comply with local labor standards. The Fair Workweek Law applies to all fast-food and retail employers operating within New York City.
City investigation found widespread Fair Workweek law breaches
In a statement, Starbucks said it remains committed to complying with local regulations but noted that the complexity of the Fair Workweek Law made compliance challenging for large employers with dynamic scheduling needs. The company emphasized that the settlement resolves compliance-related issues rather than wage disputes and that it continues to prioritize fair treatment and scheduling consistency for its partners, the term Starbucks uses for employees. Mayor Adams described the outcome as a major step forward for worker rights, noting that predictable schedules are critical for employees managing families, education, and multiple jobs.
DCWP Commissioner Vilda Vera Mayuga added that the case demonstrated the city’s readiness to hold corporations accountable when they fail to meet legal obligations. The department has previously reached settlements with other major fast-food chains, though none approaching this scale. The resolution follows ongoing scrutiny of Starbucks’ labor practices nationwide, including unionization efforts at several U.S. stores. The company, headquartered in Seattle, operates nearly 400 locations across New York City, employing thousands of hourly workers.
Largest settlement underscores rising scrutiny in labor standards
Officials said the case highlights the impact of proactive enforcement of labor protections on improving workplace stability for service-sector employees. The $38.9 million settlement marks a record in worker protection enforcement for New York City and underscores the increasing focus by local authorities on ensuring fair labor conditions in the fast-food industry. Starbucks said it would continue reviewing its scheduling systems and training procedures to maintain compliance with city labor standards. The DCWP said it would monitor the company’s adherence to the Fair Workweek Law and continue its citywide enforcement efforts across the fast-food sector. – By Content Syndication Services.
