By: TJVNews.com

Starbucks has agreed to pay almost $39 million in restitution and penalties after The Associated Press (AP) reported that New York City regulators found the coffee giant repeatedly violated the city’s Fair Workweek law, depriving thousands of workers of stable schedules and reliable income. According to AP, city officials announced Monday that more than 15,000 baristas and shift workers will receive compensation after years of arbitrary hours cuts and inconsistent scheduling practices.

Under the settlement, which AP described as one of the largest labor-law agreements in recent city history, Starbucks will pay roughly $35 million directly to affected employees and an additional $3.4 million in civil penalties to the Department of Consumer and Worker Protection. The company also agreed to fully comply with the city’s Fair Workweek protections moving forward, a point emphasized repeatedly by AP in its reporting.

Starbucks spokeswoman Jaci Anderson told AP that the company intends to operate responsibly in every jurisdiction but argued that New York’s scheduling law remains exceptionally difficult for major retailers to navigate. She stressed that Starbucks is not alone in confronting these challenges, noting, as AP reported, that “nearly every retailer in the city faces these roadblocks.”

Most workers covered under the settlement will receive $50 for each week they worked between July 2021 and July 2024, according to city officials cited by AP. Employees who suffered violations after that period may still qualify for compensation by filing complaints with the Department of Consumer and Worker Protection.

AP also highlighted that the agreement includes job-security guarantees for employees laid off during recent store closures. Those workers will now be offered opportunities for reinstatement at other Starbucks locations across New York City.

The Associated Press reported that the city’s investigation began in 2022 after dozens of workers from multiple stores lodged complaints about erratic hours, sudden cuts to shifts, and obstacles to obtaining additional work. As the probe expanded from a handful of stores to hundreds across the five boroughs, AP noted that regulators uncovered widespread violations. The investigation found that Starbucks regularly reduced employees’ hours by more than 15%, leaving workers unable to predict their weekly earnings or maintain childcare, educational commitments, or second jobs.

According to AP, investigators also discovered that employees were routinely denied access to extra shifts they were entitled to request, leaving many involuntarily stuck in part-time positions even when they sought more hours. These practices, city officials argued, undermined the very purpose of the Fair Workweek law, which is designed to give hourly workers the stability necessary to support themselves and their families.

The settlement arrives at a turbulent moment for Starbucks nationally. As AP has been reporting for weeks, the company is facing an ongoing labor battle with its rapidly expanding workers’ union. Dozens of stores across the U.S. have participated in a strike