Starbucks and New York City have reached a historic agreement under which the company will pay a total of $35.5 million to over 15,000 employees. The company had reduced their working hours and changed their schedules without prior notice, violating labor law.
According to a statement from the Mayor's Office, Starbucks violated the Fair Workweek Law. An investigation by the Department of Consumer and Worker Protection found over half a million violations since 2021, where the company illegally denied thousands of workers in over 300 locations the right to stable and predictable schedules, as well as the opportunity to work additional hours and earn more.
Under the agreement, the coffee chain will pay more than $35.5 million in wage restitution to over 15,000 workers and an additional $3.4 million in fines imposed by the city.
«When this company cuts our hours, it leaves our stores understaffed and destroys our union, making it harder for us to do our jobs and create that great customer experience,» said Starbucks barista Kai Fritz.
Mayor Eric Adams warned: «No matter how big your business is or how much money your company makes, if you violate our workers' rights, you will pay the price».
Meanwhile, the popular chain responded to the city's agreement. «The city's laws remain complex and unchanged, but our focus has not: we are committed to creating the best jobs in retail. These investments not only ensure regulatory compliance but also improve the experience of our partners in our cafes,» the company told CBS News.
