The encyclopedia · Legal & Compliance · Legal decision · 2025
Starbucks paid $38.9 million over unlawful worker scheduling in New York City
NYC's DCWP found more than 500,000 Fair Workweek violations across 300+ stores — the largest worker-protection settlement in the city's history
Starbucks · 2025-12-01
What happened
On December 1, 2025, New York City's Department of Consumer and Worker Protection and Starbucks announced a $38.9 million settlement to resolve a probe into the coffee chain's scheduling practices. The agreement covered more than $35.5 million in restitution to workers plus $3.4 million in civil penalties and costs.
The DCWP said it had found more than 500,000 violations of the city's Fair Workweek Law since 2021 across more than 300 Starbucks locations. The chain routinely and unlawfully cut employees' hours by more than 15 percent, kept workers in part-time status by denying them the chance to pick up extra shifts while hiring new workers, and failed to give most New York City employees regular, predictable schedules.
The settlement covered over 15,000 workers, with restitution owed for each week worked from July 4, 2021 through July 7, 2024. It ranked as the largest worker-protection settlement in New York City history.
Why it happened
- Starbucks' labour scheduling was built around store-level convenience and cost control, not the predictable hours the city's law requires, and the system was applied at scale across hundreds of stores
- The company treated under-scheduling and hour cuts as routine operating practice until a citywide investigation quantified half a million violations
The lesson
A scheduling system that quietly shifts unpredictability and part-time status onto workers is a legal liability repeated at every store — a citywide fine multiplies the cost of labour practice
Aftermath
Starbucks said the agreement reflected its efforts to improve scheduling and would begin paying out restitution. The settlement was the largest of its kind in New York City and a signal of stepped-up enforcement of predictable-scheduling laws.
Sources
- NYC DCWP — Mayor Adams and DCWP announce $38 million settlement with Starbucks
- Forbes — Starbucks to pay $38.9 million to settle violations of New York City labor law
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