Post by : Saif Rahman

Following an extensive investigation, Starbucks will pay $38.9 million after New York City discovered that the coffee giant repeatedly contravened local labor protection laws. These laws mandate that fast-food companies provide employees with stable and consistent work schedules. According to city officials, Starbucks was found to have violated this requirement more than 500,000 times between 2021 and 2024, making this settlement the largest worker-rights agreement in New York City’s history.

The investigation lasted three years and revealed that Starbucks frequently altered employee schedules at short notice, and diminished their hours without obtaining written consent. In certain instances, the company assigned new shifts to newly hired staff instead of offering them to current employees first, constituting rule violations. These actions breached a city law established in 2017 that safeguards fast-food workers against abrupt schedule modifications and unfair shift distributions.

Under the terms of the settlement, Starbucks will distribute $35.5 million directly to over 15,000 affected workers. Employees will receive $50 for each week worked between July 4, 2021, and July 7, 2024. Additionally, $3.4 million will cover penalties and administrative expenses for the city. New York City Mayor Eric Adams emphasized that this agreement underscores the city's commitment to protecting workers and ensuring that major corporations adhere to the law.

Starbucks expressed its support for the intent of the law, while arguing that practical compliance can be challenging. The company noted that even routine changes, such as adjusting a shift by a couple of hours or asking a colleague to substitute for an absentee, could lead to a violation. Starbucks highlighted the difficulty of balancing employee needs with the practical realities of managing a large business.

New York City’s scheduling legislation is recognized as one of the first in the United States to restrict “on-call scheduling,” a practice where employers summon employees or cancel shifts on short notice. This often leaves workers uncertain about their earnings and complicates personal planning. Similar laws have since emerged in other regions, such as Oregon, Los Angeles, Chicago, and San Francisco, aimed at protecting employees across retail, fast food, and service sectors.

This settlement conveys a powerful message to employers nationwide: worker schedules must remain fair, transparent, and predictable. For thousands of Starbucks employees in New York City, this resolution acknowledges the anxiety and unpredictability they endured over the years. For the city, it reaffirms its dedication to holding large corporations responsible and assuring that workers receive the dignity and respect they rightfully deserve.

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