Starbucks found in violation of labor laws in the U.S., ordered to pay nearly $150 million to New York City employees.

(New York) The New York City Department of Consumer and Worker Protection (DCWP) has announced that Starbucks violated the city’s Fair Workweek Law more than 500,000 times since 2021. Following an extensive investigation that began in 2022, the company has agreed to a settlement requiring it to pay $35 million to employees in New York City.

The case originated from dozens of employee complaints, which prompted the DCWP to expand its review to all Starbucks locations within the city. Investigators found that Starbucks failed to provide workers with stable and predictable schedules and frequently reduced employees’ hours without proper notice.

DCWP Commissioner Vilda Vera Mayuga stated that more than 15,000 Starbucks employees will receive weekly compensation of $50 each — covering the period from July 2021 to July 2024. This marks one of the largest worker-protection settlements in New York City’s history.

Under the settlement, Starbucks is required to comply fully with New York labor regulations moving forward, including providing predictable scheduling and proper access to overtime. In response, Starbucks acknowledged that the city’s labor laws are “complex” and may pose operational challenges, but affirmed that the company supports the law and will cooperate fully.