New York City and Starbucks $35.5 million deal!
New York, US, Dec 1 (EFE).-
New York City and Starbucks reached a landmark agreement on Monday under which the coffee chain will pay 35.5 million dollars to more than 15,000 employees whose hours were reduced, or schedules changed without the advance notice required by local labor laws.
According to a statement from City Hall, the agreement represents the largest worker-protection settlement in New York City’s history.
The Department of Consumer and Worker Protection (DCWP) found that Starbucks committed more than half a million violations of the city’s Fair Workweek Law since 2021, affecting employees at more than 300 stores.
The investigation began in 2022 after the city received dozens of worker complaints and relied on employee testimony and company records. Officials later expanded the probe once they identified “systemic violations.”
DCWP concluded that Starbucks “illegally” denied employees stable and predictable schedules, the right to work additional hours, and the opportunity to earn more.
Employers in fast food must provide schedules 14 days in advance, offer extra hours to existing staff first, and compensate workers for last-minute changes.
“No matter how big your business is or how much money your company makes, if you violate our workers’ rights, you will pay the price,” Mayor Eric Adams said in the announcement.
35.5 million dollars for workers and millions in fines Under the agreement, Starbucks will pay more than 35.5 million dollars in restitution to over 15,000 workers, and any additional employees who come forward, along with 3.4 million dollars in city-imposed penalties.
The settlement brings to nearly 90 million dollars the total amount recovered for workers by the city over the past four years.
Kai Fritz, a Starbucks barista, said unpredictable scheduling undermines both staff and customers.
“When this company cuts our hours, understaffs our stores, and breaks our union, it makes it harder for us to do our jobs and create that great experience for customers,” Fritz said.
Starbucks responds, citing investment in staff Starbucks said it remains committed to complying with city regulations and improving workplace conditions.
“The city’s laws remain complex and unchanged, but our focus has not changed: we are committed to creating the best retail employment experience,” the company told CBS.
The chain said it has invested 500 million dollars as part of its “Back to Starbucks” strategy to enhance employee conditions and ensure compliance.
“Today, more partners receive schedules that fit their lives, making it easier to align availability and preferences while meeting local legal requirements,” the company added.EFE rh/seo
