Starbucks to pay $35M to NYC workers to settle claims it denied them regular shifts, cut hours

Starbucks has agreed to pay roughly $35 million to more than 15,000 New York City employees to resolve allegations that the chain failed to provide stable schedules and cut hours at random.

Under the settlement with the city’s Department of Consumer and Worker Protection, the company will also pay $3.4 million in civil penalties and has committed to honour the Fair Workweek law from now on.

A Starbucks spokesperson said the company strives to operate responsibly and comply with all applicable local rules in every market where it does business, while stressing that the city’s law presents unique challenges.

“This (law) is notoriously challenging to manage and this isn’t just a Starbucks issue—nearly every retailer in the city faces these roadblocks,” said spokeswoman Jaci Anderson.

Employees whose work between July 2021 and July 2024 was impacted will receive $50 for each week worked; those who experienced violations after that period may file a complaint with the department for possible compensation.

The $38.9 million agreement also ensures that workers laid off during recent store closures can seek reinstatement at other Starbucks locations in the city.

Investigation of the situation began in 2022 after dozens of employee complaints about certain Starbucks stores and eventually expanded to cover hundreds of the chain’s locations throughout the city.

Most Starbucks employees never received regular schedules, and the company routinely cut hours by more than 15 percent, leaving workers unsure of their weekly earnings and unable to plan commitments such as childcare, schooling, or other jobs.

According to the city, the company consistently denied workers opportunities to pick up extra shifts, effectively keeping them part‑time against their wishes.

The New York settlement arrives as Starbucks’ union persists with a nationwide strike that started last month at dozens of locations.

Both sides disagree on the number of stores involved and the overall impact of the strike.