Starbucks will pay more than $38 million in a settlement announced Monday by New York City Mayor Eric Adams, after the coffee giant was accused of violating NYC's Fair Workweek Law over half a million times since 2021.
The big picture: The agreement following an NYC Department of Consumer and Worker Protection investigation marks the largest worker protection settlement in the city's history, Adams said on X.
Zoom in: About $35 million will go to more than 15,000 New York City baristas who complained that the company failed to provide stable schedules and indiscriminately cut hours, per the settlement.
- The order requires Starbucks to pay around $3.4 million in civil penalties to the city.
- "It doesn't matter how big your business is — if you violate our workers' rights, you will pay the price," Adams said on X.
Zoom out: NYC Mayor-elect Zohran Mamdani and Sen. Bernie Sanders (I-Vt.), who have both expressed their support for labor unions, joined a group of Starbucks employees on strike protesting for better wages and working conditions.
What they're saying: "At Starbucks, we are committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where we do business," the company said in a statement.
- "This compensation is about compliance, not unpaid wages," Starbucks said. "We support the intent of the law and remain committed to compliance, but its complexity creates real-world challenges."
Go deeper: Starbucks' big regret and the plan to fix it
Editor's note: This article has been updated with details on NYC Mayor-elect Zohran Mamdani and Sen. Bernie Sanders joining striking Starbucks workers in New York City.
