Starbucks Reaches $38.5 Million Settlement Over NYC Fair Workweek Violations Amidst Ongoing Strike
Starbucks has agreed to a landmark $38.5 million settlement with New York City, resolving allegations of widespread violations of the city’s Fair Workweek Law. This agreement, impacting over 15,000 workers, comes as the “Red Cup Rebellion” strike continues, highlighting ongoing concerns about labor practices at the coffee giant. The settlement includes $35.5 million for workers and $3.4 million in civil penalties, as announced by the New York City Department of Consumer and Worker Protection (DCWP).
(Image: Mayor-elect Zohran Mamdani and U.S. Sen. Bernie Sanders join striking Starbucks workers on a picket line in Brooklyn, New York City, December 1, 2025. Credit: Gardiner Anderson/New York Daily News/tribune News Service via Getty Images)
Key Takeaways
Here’s a breakdown of the key details of the settlement:
* Extensive Violations: The DCWP found over 500,000 violations of the Fair Workweek Law across 300 Starbucks locations in new York City, dating back to 2021.
* Unstable Scheduling: Workers consistently faced unpredictable schedules and were often denied opportunities to increase their hours,effectively keeping them in part-time roles against their wishes.
* Financial Relief: Most baristas will receive $50 for each week worked between July 2021 and July 2024.
* Ongoing Claims: You can still file a complaint with the DCWP for violations occurring after July 2024 and potentially receive compensation.
* Reinstatement Rights: Workers laid off due to store closures will now have the right to be reinstated at other open Starbucks locations within the city.
This settlement represents the largest worker protection settlement in New York City history. Its declaration coincided with a show of support for striking workers from Mayor-elect Zohran Mamdani and U.S. Senator Bernie sanders, who joined a picket line in Brooklyn.
Understanding the Fair Workweek Law
The Fair Workweek Law was designed to protect fast-food workers in New York City, and it outlines several crucial rights. Here’s what you need to know:
* Advance Notice: Employers must provide workers with their schedules 14 days in advance.
* Schedule Changes: You are entitled to premium pay if your schedule is changed with less than 14 days’ notice.
* Shift Opportunities: You have the right to decline extra shifts and to be offered any newly available shifts before the employer hires new staff.
* “Clopening” Prevention: Employers cannot schedule you for a closing shift followed immediately by an opening shift (“clopening”) without your written consent and a $100 premium.
* Protection Against Retaliation: Firing or reducing your hours by more than 15% without “just cause” is prohibited,and laid-off workers must be offered reinstatement at other locations.
Context: The “Red Cup Rebellion” and Ongoing Labor Disputes
This settlement arrives during a period of heightened labor unrest at Starbucks. The ongoing “Red Cup Rebellion” strike, led by Starbucks Workers United, centers on demands for better wages, benefits, and improved working conditions. Allegations of unfair labor practices, including retaliation against union organizers, have been a central focus of the strike.
The DCWP inquiry and subsequent settlement underscore the importance of enforcing worker protection laws and ensuring that companies like Starbucks adhere to standards of fair treatment and predictable scheduling.
Further Reading: You can find more details about the settlement and the fair Workweek Law on the NYC Department of Consumer and Worker protection website: https://www.nyc.gov/site/dca/news/032-25/mayor-adams-dcwp-38-million-settlement-starbucks-largest-worker-protection
