Starbucks to pay more than $38 million to NYC workers over labor violations

"Starbucks will pay about $35 million to more than 15,000 New York City workers to settle claims it denied them stable schedules and arbitrarily cut their hours, city officials announced Monday. The company will also pay $3.4 million in civil penalties under the agreement with the city's Department of Consumer and Worker Protection. It also agrees to comply with the city's Fair Workweek law going forward."

"A company spokeswoman said Starbucks is committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where it does business, but also noted the complexitiesc of the city's law. "This (law) is notoriously challenging to manage and this isn't just Starbucks issue, nearly every retailer in the city faces these roadblocks," spokeswoman Jaci Anderson said."

"The city began investigating in 2022 after receiving dozens of worker complaints against several Starbucks locations, and eventually expanded its investigation to the hundreds of stores in the city. The probe found most Starbucks employees never got regular schedules and the company routinely reduced employees' hours by more than 15%, making it difficult for staffers to know their regular weekly earnings and plan other commitments, such as child care, education or other jobs."

Starbucks will pay about $35 million to over 15,000 New York City workers and $3.4 million in civil penalties, totaling $38.9 million, under an agreement with the city's Department of Consumer and Worker Protection. The company agrees to comply with the city's Fair Workweek law going forward. Most affected hourly employees will receive $50 for each week worked from July 2021 through July 2024, with later violations eligible for complaint-based compensation. Laid-off employees from recent city store closings will be offered reinstatement opportunities. A city probe found widespread irregular schedules, routine reductions of hours by more than 15%, and denial of extra shift opportunities.

Read at Fast Company