Starbucks will pay $38.9 million after New York City’s Department of Consumer and Worker Protection (DCWP) found the company violated fair work schedule laws over half a million times since 2021.

New York Mayor Eric Adams and the DCWP announced the settlement in a news release on Monday, Dec. 1, 2025, calling it the largest worker protection payout in the city’s history.

“It does not matter how big your business is or how much money your company makes, if you violate our workers’ rights, you will pay the price,” Adams said in a statement. “With this landmark settlement, we’ll put tens of millions of dollars back into the pockets of hard-working New Yorkers and reinforce every New Yorker’s right to a reliable schedule, full hours, and basic dignity.”

DCWP launched its investigation in 2022 after receiving dozens of worker complaints at several Starbucks stores in the city. After uncovering “a pattern of systemic violations,” the agency expanded the probe to every Starbucks location citywide, per the news release.

What Is NYC’s Fair Workweek Law?

According to the DCWP, New York City’s Fair Workweek Law took effect in 2017. It requires fast food employers to provide stable schedules and post them 14 days in advance. The law also prohibits firing without just cause and gives workers the right to decline extra hours, limits reduction of hours to no more than 15% without a legitimate business reason, and bans “clopening” shifts — having workers scheduled for a closing shift followed by an opening shift the next morning — unless the worker consents in writing and is paid a $100 premium, notes the Dec. 1 press release.

DCWP investigators found that Starbucks “illegally prioritized their own profits over their workers’ rights,” failing to provide regular schedules and “routinely and unlawfully” reducing workers’ hours. The company’s actions reportedly made it difficult for employees to manage child care, hold second jobs, or make ends meet, per the press release.

“When this company cuts our hours, understaffs our stores, and busts our union, it makes it harder for us to do our job and create that great experience for customers,” Starbucks barista Kai Fritz said in the release.

Under the settlement, over 15,000 hourly workers will receive payment in the form of checks this winter. Employees who worked at Starbucks from July 4, 2021, through July 7, 2024, will get $50 per week worked, meaning someone who worked a year and a half could receive $3,900, the news release states.

“This settlement is a step in the right direction,” Fritz added. “It shows the power baristas have when we stand together and demand change. We are continuing to fight back against Starbucks’ greed and will not stop until we have a fair contract that ensures the support and protections we need to thrive.”

Starbucks Says Fair Workweek Law Is A ‘Good Goal’ But Difficult To Navigate

In a statement posted after the settlement announcement, Starbucks said it supports New York City’s Fair Workweek Law but described the rules as complex and creating “real-world challenges.” The company noted that even minor shift changes can trigger violations and emphasized that the payouts are “about compliance, not unpaid wages.”

“Every change creates a domino effect — even when partners swap shifts for a doctor’s appointment, audition, or family obligation,” Starbucks said in the statement. “Each adjustment has to be documented and approved, which makes compliance challenging and limits the flexibility many partners value. And we’re not alone — other food and beverage retailers face the same hurdles. Since this law went into effect, employers have paid tens of millions of dollars in settlements reflecting the complexity of compliance across the industry.”

Following the DCWP investigation, Starbucks said in the statement that it has invested $500 million in its “Back to Starbucks” strategy to improve scheduling and staffing. The company cited larger rosters, upgraded scheduling tools, and expanded training and technology, which it says have helped nearly 85% of employees regularly get the shifts they want.

“Providing the best job in retail means more than just a paycheck — it’s about creating real opportunities and providing real support for our partners. Today, our hourly partners earn an industry-leading average of $30 in pay and benefits. And those benefits are designed around what matters most: comprehensive healthcare, company equity, up to 18 weeks of paid parental leave, and the chance to earn a four-year degree with tuition paid upfront — all for partners averaging at least 20 hours a week,” Starbucks said.

“It’s a job people choose and stay with. Our turnover is less than half the industry average, and every year, more than a million people apply to join us,” the coffee chain added.