🗞️ Starbucks to Pay $35M to NYC Workers in Settlement

Today, Starbucks agreed to a landmark settlement with New York City's Department of Consumer and Worker Protection to resolve allegations that it denied workers stable schedules and arbitrarily cut their hours. The settlement includes $35 million in compensation for more than 15,000 current and former hourly employees who worked between July 2021 and July 2024, plus an additional $3.4 million in civil penalties.

The agreement, which also addresses layoffs from recent store closures, comes as the company faces a continuing strike by its unionized baristas that began last month. The strike, which has hit dozens of locations nationwide, is driven by demands for better hours, increased staffing, and a first contract nearly four years after the first store unionized in Buffalo.

The ongoing labor dispute has attracted high-profile political support, with NYC Mayor-elect Zohran Mamdani and U.S. Senator Bernie Sanders joining a picket line in Brooklyn to stand with the striking workers.

While a union spokesperson stated the company is ready to negotiate, Starbucks maintains it is "ready to talk when the union is ready to return to negotiations."

Key Points:

• Starbucks will pay $35 million to over 15,000 NYC workers to settle claims of denied stable schedules and arbitrary hour cuts.
• The company will also pay $3.4 million in civil penalties to the City of New York.
• The settlement stems from an investigation by the NYC Department of Consumer and Worker Protection that began in 2022.
• Affected employees will receive approximately $50 for each week worked between July 2021 and July 2024.
• The company agreed to comply with NYC's Fair Workweek law going forward.
• The announcement was made on the same day Mayor-elect Zohran Mamdani and Senator Bernie Sanders joined striking baristas on a picket line in Brooklyn.
• The ongoing strike by unionized workers is demanding better hours, increased staffing, and a first contract.
• Approximately 550 of Starbucks' 10,000 company-owned stores are now unionized.
• A Starbucks spokesperson stated the company is "ready to talk when the union is ready to return to negotiations."
• The settlement also guarantees reinstatement opportunities for employees laid off during recent NYC store closures.

Primary Author: Associated Press

Primary Source: WSVN (Channel 7 News)

Link to Source: https://wsvn.com/news/us-world/starbucks-to-pay-35m-to-nyc-workers-in-settlement-as-ongoing-strike-draws-pols-to-picket-line/

Supporting Links:

• Official NYC Department of Consumer and Worker Protection announcement on the settlement
• Information on NYC's Fair Workweek Law