Starbucks to pay $39 million in landmark N.Y.C. labor law settlement

Wednesday, December 3, 2025 -Starbucks has agreed to pay $38.9 million to settle violations of New York City’s Fair Workweek Law, following a city investigation that found the company repeatedly failed to provide stable, predictable schedules to its employees. 

Over 15,000 hourly workers across more than 300 locations will receive restitution payments, while Starbucks will also pay $3.4 million in civil penalties and costs, making this the largest worker-protection settlement in the city’s history.

The settlement comes after the Department of Consumer and Worker Protection determined that Starbucks committed over 500,000 violations since 2021, including cutting hours arbitrarily and denying employees opportunities to pick up extra shifts. 

Workers impacted by the violations are expected to receive roughly $50 per week worked during the affected period. The agreement also mandates that Starbucks comply with Fair Workweek scheduling standards going forward.

This landmark settlement highlights the growing enforcement of labor protections in New York City and sends a strong signal to employers nationwide. For hourly workers, it delivers both financial relief and a precedent for predictable scheduling rights. 

For businesses, it underscores the urgent need to maintain compliance with labor regulations to avoid costly penalties, while also encouraging workplace practices that support employee stability and retention.