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New York City has reached a historic $39 million settlement with Starbucks after accusing the company of more than half a million labor-law violations.
New York City has reached a record-breaking labor settlement with Starbucks after a sweeping investigation into the company’s scheduling and compensation practices.
Municipal officials say the agreement follows years of employee complaints and confirms far-reaching violations across dozens of stores.
The case marks the largest social settlement ever secured by the city, according to 20minutes.
What investigators found
20minutes reports that New York accused the coffee chain of “more than half a million violations” of local labor law since 2021.
City officials said thousands of workers were denied predictable schedules, proper overtime and other legally required compensation.
Authorities argued that Starbucks management had “arbitrarily cut into work schedules and illegally prioritized its own profits,”
prompting the city’s Consumer and Worker Protection Service (DCWP) to launch a formal investigation in 2022.
How the payout works
Of the $39 million settlement, 20minutes states that $35.5 million will be distributed to more than 15,000 affected employees.
Each hourly worker will receive $50 for every week worked between July 4, 2021, and July 7, 2024 — up to roughly $3,900 for those employed throughout the entire period.
The agreement also includes compensation for additional scheduling violations identified after July 2024, reflecting what the DCWP described as “systemic violations” far more extensive than the original complaints.
A boost for union organizers
For Workers United — the union behind the large-scale organizing push at Starbucks cafés — the settlement signals a breakthrough.
As quoted by 20minutes, international president Lynne Fox said, “This historic agreement represents a major victory for thousands of Starbucks baristas in New York.” She added that “for too long, Starbucks has acted with impunity, manipulating schedules, disrespecting employees, and ignoring legal protections.”
The dispute unfolds as several thousand Starbucks employees across the United States continue an open-ended strike that began on November 13, coinciding with the chain’s annual “Red Cup” promotion.
Talks still frozen
20minutes notes that despite growing pressure, negotiations between Starbucks management and the Starbucks Workers Union — established in 2021 — have been stalled since the spring.
Workers say they are still seeking a comprehensive labor framework agreement.
Sources: 20minutes, New York City Department of Consumer and Worker Protection, Workers United
