Starbucks will pay $38.9 million to New York City after breaking fair scheduling laws more than 500,000 times since 2021, reported The New York Times.
What happened?
Mayor Eric Adams announced the agreement on Dec. 1, describing it as the biggest worker protection payout in city history. Over 15,000 hourly Starbucks employees will get money for scheduling rule violations.
City investigators from the Department of Consumer and Worker Protection learned that Starbucks reduced employee hours unexpectedly and didn't give workers consistent weekly schedules at more than 300 stores citywide. Employees found it hard to plan for child care or work additional jobs when their shifts kept changing.
"With this landmark settlement, we'll put tens of millions of dollars back into the pockets of hardworking New Yorkers and reinforce every New Yorker's right to a reliable schedule, full hours and basic dignity," Adams said in a statement.
Eligible workers get $50 per week for time worked between July 2021 and July 2024. That adds up to roughly $4,000 for someone employed there for 18 months.
In a statement posted to its website, Starbucks said it is "committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where we do business" but expressed concern about the constraints of the Fair Workweek law. The company said it supports "the intent of the law" but that "its complexity creates real-world challenges."
Starbucks' statement expressed concern that "even minor schedule changes can trigger a violation under the law." It's worth noting, for clarity, that the law does not consider this a "violation" unless no compensation is paid upfront under its guidelines, which would be between $10 to $75 per scheduling change made with less than 14 days' notice.
In effect, the law provides employees with some compensation to offset the personal costs and other downsides of last-minute scheduling changes — similar to overtime pay — and is not designed to penalize companies for instances of asking an employee to cover a shift.
Why is addressing labor violations important?
Fair working conditions help build sustainable communities. When corporations put their bottom line ahead of workers, they damage both employees and the larger effort to protect our planet.
Erratic schedules push workers into crisis mode, leaving little room to join community efforts or make earth-friendly decisions. If you're working multiple jobs with shifts that change constantly, you have less capacity to cut waste, pick sustainable products, or push for climate action.
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Never 👎 New York City passed its Fair Workweek Law in 2017. Under this law, fast food companies must post work schedules two weeks out and cannot slash hours beyond 15% without proper justification.
The city found Starbucks "arbitrarily cut schedules and illegally prioritized their own profits over their workers' rights."
What's being done about Starbucks' labor violations?
This agreement proves cities can hold corporations accountable when they violate worker protection laws. New York's action warns other companies that disregarding fair scheduling rules comes with steep financial costs.
Starbucks Workers United serves as the union for roughly 12,000 baristas. These workers staff over 600 stores. They're still negotiating for better contracts. A third-party mediator joined discussions this year when pay negotiations stalled.
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