Starbucks Set to Reap Consequences of Labor Disregard, Paying $38.9 Million to NYC Workers
In a significant victory for the city's workers' rights, New York City officials have announced that Starbucks will pay a staggering $35.5 million and $3.4 million in fines to settle allegations of violating the Fair Workweek Law. The settlement affects over 15,000 workers across more than 300 locations, marking the largest worker protection settlement in city history.
The violations, which span back to 2021, were found to be widespread, with DCWP officials ruling that Starbucks had committed over 500,000 infractions. Workers were allegedly denied stable and predictable schedules, making it difficult for them to pick up extra shifts or plan their lives around their work schedules. This practice left many baristas involuntarily classified as part-time employees, a decision that significantly impacted their working conditions.
As per the settlement, most affected workers will receive $50 for each week worked from July 2021 through July 2024. Furthermore, the agreement allows workers who experienced violations after this date to file a complaint and potentially receive compensation. Moreover, it grants city workers who were laid off due to store closures the right to be reinstated at other open locations.
The timing of the settlement is also notable, as hours before its announcement, Mayor-elect Zohran Mamdani and U.S. Senator Bernie Sanders joined a Starbucks strike in Brooklyn. The union has been waging a "Red Cup Rebellion" against the coffee giant, highlighting issues such as lack of transparency, low wages, and unfair working conditions.
The Fair Workweek Law, enacted to address these concerns, requires NYC fast food employers to provide workers with regular schedules 14 days in advance, premium pay for schedule changes, and the opportunity to decline extra shifts. Employers are also restricted from scheduling "clopening" shifts without explicit consent and a $100 premium.
With this settlement, Starbucks will face severe repercussions for its labor practices. The company must now confront the consequences of disregarding workers' rights and take concrete steps to ensure compliance with city regulations going forward.
In a significant victory for the city's workers' rights, New York City officials have announced that Starbucks will pay a staggering $35.5 million and $3.4 million in fines to settle allegations of violating the Fair Workweek Law. The settlement affects over 15,000 workers across more than 300 locations, marking the largest worker protection settlement in city history.
The violations, which span back to 2021, were found to be widespread, with DCWP officials ruling that Starbucks had committed over 500,000 infractions. Workers were allegedly denied stable and predictable schedules, making it difficult for them to pick up extra shifts or plan their lives around their work schedules. This practice left many baristas involuntarily classified as part-time employees, a decision that significantly impacted their working conditions.
As per the settlement, most affected workers will receive $50 for each week worked from July 2021 through July 2024. Furthermore, the agreement allows workers who experienced violations after this date to file a complaint and potentially receive compensation. Moreover, it grants city workers who were laid off due to store closures the right to be reinstated at other open locations.
The timing of the settlement is also notable, as hours before its announcement, Mayor-elect Zohran Mamdani and U.S. Senator Bernie Sanders joined a Starbucks strike in Brooklyn. The union has been waging a "Red Cup Rebellion" against the coffee giant, highlighting issues such as lack of transparency, low wages, and unfair working conditions.
The Fair Workweek Law, enacted to address these concerns, requires NYC fast food employers to provide workers with regular schedules 14 days in advance, premium pay for schedule changes, and the opportunity to decline extra shifts. Employers are also restricted from scheduling "clopening" shifts without explicit consent and a $100 premium.
With this settlement, Starbucks will face severe repercussions for its labor practices. The company must now confront the consequences of disregarding workers' rights and take concrete steps to ensure compliance with city regulations going forward.