NYC Announces Record-Breaking $38.9 Million Starbucks Settlement For Fair Workweek Violations

On December 1, 2025, New York City (the “City”) Mayor Eric Adams and the Department of Consumer and Worker Protection (“DCWP”) announced the largest worker protection settlement in its history. The City and DCWP reached a $38.9 million settlement with Starbucks after a multi-year investigation found more than 500,000 violations of the City’s Fair Workweek Law across over 300 New York City locations.

According to DCWP, Starbucks routinely denied thousands of employees predictable schedules, unlawfully cut hours, and blocked workers from picking up additional shifts, while continuing to hire new staff.

Under the Fair Workweek Law, fast food employers in New York City must give workers regular schedules, work schedules 14 days in advance that are consistent with the regular schedule, premium pay for schedule changes, the opportunity to decline to work additional time, and the opportunity to work newly available shifts before hiring new workers. Fast food employers also cannot schedule a “clopening” shift (a closing shift one night, followed by an opening shift the very next morning) unless the worker consents in writing and receives a $100 premium to work the shift. Additionally, these fast food employers cannot fire or reduce the hours of a worker by more than 15 percent without just cause and must reinstate laid-off workers at their other locations.

Under the agreement, over $35.5 million will be paid in restitution to more than 15,000 hourly workers, and $3.4 million will be paid in civil penalties and costs. Further, Starbucks must comply with the Fair Workweek Law going forward, including requirements around scheduling, hours, and reinstatement rights. Most eligible employees will receive $50 for each week worked between July 4, 2021 and July 7, 2024, meaning that a worker employed for about a year and a half could receive nearly $4,000.