New York City to Collect Record $35 Million From Starbucks Over Worker Exploitation Allegations
In a major victory for its employees, the New York City Department of Consumer and Worker Protection (DCWP) announced Monday that it has reached an agreement with Starbucks, requiring the coffee giant to pay around $35 million in settlements to over 15,000 workers. The deal comes after years of allegations that the company had been systematically denying thousands of employees stable schedules and cutting their hours without notice.
Under the terms of the agreement, most hourly workers employed by Starbucks in New York City between July 2021 and early July 2024 will receive $50 for each week they worked, amounting to tens of thousands of dollars. An employee who worked for nearly two years during that period could earn upwards of $3,900.
The DCWP's investigation, which began in 2022, uncovered more than half a million alleged violations of the city's Fair Workweek Law, including Starbucks employees never receiving regular schedules and having their hours reduced by as much as 15%. The company also allegedly denied workers the chance to pick up extra shifts, leaving them involuntarily in part-time status.
"This is an egregious example of how companies like Starbucks can exploit their employees without consequences," said Vilda Vera Mayuga, Director of Consumer and Worker Protection. "These are individuals who need regularity in their lives, dignity, and respect. We will continue to hold companies accountable for violating these basic rights."
The settlement comes as part of the ongoing "Red Cup Rebellion" workers strike by Starbucks Workers United, which represents employees at 17 stores across the five boroughs and several others in New York and Long Island. The union has been demanding better hours and pay, as well as restitution for alleged union-busting tactics.
For many Starbucks baristas, including Kai Fritz, who has worked in both an East Village store and a Bensonhurst location, this settlement is a welcome relief. "It's hard to tell which issues were systemic and which were just specific to our stores," said Fritz, a member of the union. "But what's clear is that we need predictable schedules and fair treatment. This settlement means thousands of dollars for my coworkers and me."
The settlement also guarantees employees who were laid off during recent store closures the opportunity for reinstatement at other locations.
Starbucks described the payment as "about compliance, not unpaid wages" and acknowledged that meeting the requirements of the Fair Workweek Law can be challenging. However, the union views this as a major victory and plans to continue monitoring for any continuing violations.
In a major victory for its employees, the New York City Department of Consumer and Worker Protection (DCWP) announced Monday that it has reached an agreement with Starbucks, requiring the coffee giant to pay around $35 million in settlements to over 15,000 workers. The deal comes after years of allegations that the company had been systematically denying thousands of employees stable schedules and cutting their hours without notice.
Under the terms of the agreement, most hourly workers employed by Starbucks in New York City between July 2021 and early July 2024 will receive $50 for each week they worked, amounting to tens of thousands of dollars. An employee who worked for nearly two years during that period could earn upwards of $3,900.
The DCWP's investigation, which began in 2022, uncovered more than half a million alleged violations of the city's Fair Workweek Law, including Starbucks employees never receiving regular schedules and having their hours reduced by as much as 15%. The company also allegedly denied workers the chance to pick up extra shifts, leaving them involuntarily in part-time status.
"This is an egregious example of how companies like Starbucks can exploit their employees without consequences," said Vilda Vera Mayuga, Director of Consumer and Worker Protection. "These are individuals who need regularity in their lives, dignity, and respect. We will continue to hold companies accountable for violating these basic rights."
The settlement comes as part of the ongoing "Red Cup Rebellion" workers strike by Starbucks Workers United, which represents employees at 17 stores across the five boroughs and several others in New York and Long Island. The union has been demanding better hours and pay, as well as restitution for alleged union-busting tactics.
For many Starbucks baristas, including Kai Fritz, who has worked in both an East Village store and a Bensonhurst location, this settlement is a welcome relief. "It's hard to tell which issues were systemic and which were just specific to our stores," said Fritz, a member of the union. "But what's clear is that we need predictable schedules and fair treatment. This settlement means thousands of dollars for my coworkers and me."
The settlement also guarantees employees who were laid off during recent store closures the opportunity for reinstatement at other locations.
Starbucks described the payment as "about compliance, not unpaid wages" and acknowledged that meeting the requirements of the Fair Workweek Law can be challenging. However, the union views this as a major victory and plans to continue monitoring for any continuing violations.
. I feel bad for those workers who had to go without stable schedules and hours for so long. It's not fair that they were treated like that 
. The whole "Red Cup Rebellion" thing sounds really intense too 
. I hope it leads to more changes for workers everywhere 
. It's a win for the union, but also a reminder that companies can get away with some shady stuff if we don't keep an eye on them 
. Anyway, it's definitely a relief for those employees who got their money 
.
those workers have been fighting for years and it's awesome that they're finally getting some relief 
the whole "red cup rebellion" thing has gotten so much attention, but what really matters is that people are speaking out and demanding better working conditions 
vilda vera mayuga said it best - these companies think they can just exploit their employees without consequences? newsflash: times are changing 
$35 million is like whoa, i'm glad these workers got their due 
but at least now they have some cash to live on 
the fact that most hourly workers will get $50 a week for each week they worked is still kinda low imo 
i mean, $3,900 for someone who worked nearly two years? that's like, not bad, but also not great 
anyway, this is definitely a win for workers and a major fail for starbucks 
. This settlement is not just a win for the workers who have been denied stable schedules and fair hours, but also a reminder that we need stronger labor laws in our country 
. This is definitely a major victory for the labor movement and a step towards creating a more just and equitable workplace 
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but it's sad that they even had to fight for this. shouldn't companies just get it right from the start? anyway, gotta props to Vilda Vera Mayuga and the DCWP for holding Starbucks accountable 
$35 million is like a huge amount of money and it's all because of the workers speaking up about their exploitation 
especially baristas like Kai Fritz who have been working hard in the NYC stores 
. this settlement is like a win-win for everyone involved - Starbucks has to comply with the law and workers get their rightful pay 
at least the city is holdin Starbucks accountable $35 million is a big win 4 those employees tho, can only imagine how relieved they must be to finally get some justice 
It's not like being a barista is an easy job, and you need regular paychecks to survive. 
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i'm so hyped about this news! it's amazing how one company like starbucks can get held accountable for treating its workers like dirt 
they deserve it after all they went through. i mean, its about time companies like starbucks are held accountable for their actions 
. This whole thing reeks of a clever PR stunt designed to make them look like "good corporate citizens"