Starbucks Class Action Lawsuit, Starbucks NYC $38.9M Settlement Sends Checks to 15,000+ Workers This Winter
Starbucks will pay $38.9 million in the largest worker protection settlement in NYC history after violating Fair Workweek Law over 500,000 times since 2021. Mayor Adams announced December 1, 2025 that 15,000+ baristas will receive backpay checks this winter—$50 per week worked from July 4, 2021 through July 7, 2024. The settlement covers 300+ locations where Starbucks cut hours, denied schedule stability, and blocked workers from picking up extra shifts.
What Is the Starbucks NYC Settlement About?
The New York City Department of Consumer and Worker Protection (DCWP) announced the $38.9 million settlement on December 1, 2025, following a multi-year investigation that began in 2022. DCWP found Starbucks committed over 500,000 violations of NYC’s Fair Workweek Law across more than 300 city locations between 2021 and 2024.
The violations include arbitrarily cutting workers’ hours by more than 15%, failing to provide regular schedules 14 days in advance, denying workers opportunities to pick up additional shifts before hiring new employees, and keeping workers involuntarily in part-time status while continuing to hire.
How Much Money Will Workers Receive?
The settlement breaks down as follows:
$35.5 million in restitution to over 15,000 current and former hourly Starbucks workers who worked in NYC from July 4, 2021 through July 7, 2024.
$3.4 million in civil penalties and costs paid to New York City.
$50 per week worked for each eligible worker during the violation period.
A barista who worked continuously for 18 months (78 weeks) will receive approximately $3,900. Workers will receive checks in the mail this winter, with no action required if they worked during the covered period.
Who Is Eligible for Backpay?
All hourly Starbucks employees who worked in New York City from July 4, 2021 through July 7, 2024 automatically qualify for backpay. This includes:
- Current Starbucks baristas and shift supervisors
- Former employees who left the company but worked during the violation period
- Workers from any of the 300+ NYC Starbucks locations investigated
- Part-time and full-time hourly workers
Workers who experienced violations after July 7, 2024 can file complaints with DCWP to claim additional compensation. Laid-off employees from recent store closures have reinstatement rights at other open NYC locations under the settlement.
What Fair Workweek Law Violations Occurred?
NYC’s Fair Workweek Law, enacted in 2017 and strengthened in 2021, requires fast food employers to:
Provide schedules 14 days in advance: Workers must receive their schedules two weeks ahead so they can plan childcare, education, and other jobs.
Maintain regular schedules: Employers cannot arbitrarily change schedules without premium pay for changes.
Offer shifts to existing workers first: Before hiring new employees, companies must offer additional hours to current part-time workers who want more hours.
Cannot reduce hours by more than 15% without just cause: Employers cannot cut workers’ hours significantly without legitimate business reasons.
Pay premium for schedule changes: Last-minute changes require additional compensation.
No clopening shifts without consent: Workers cannot be scheduled to close one night and open the next morning without written consent and $100 premium pay.
DCWP’s investigation found Starbucks systematically violated all these provisions. Most NYC Starbucks employees never received regular schedules, making it impossible to plan their lives. The company routinely cut hours by more than 15%, leaving workers uncertain about their weekly income. Starbucks also denied workers the opportunity to pick up extra shifts, keeping them involuntarily part-time while hiring new employees.
What Did the DCWP Investigation Find?
DCWP launched its investigation in 2022 after receiving dozens of worker complaints about several Starbucks locations. The investigation initially focused on specific stores but expanded citywide after uncovering systemic violations.
Investigators reviewed scheduling data from Starbucks, interviewed hundreds of employees, and analyzed company practices across 300+ NYC locations. The evidence revealed a deliberate pattern of violations affecting thousands of workers over three years.
“Starbucks systematically violated the law because they thought they could get away with it,” DCWP Commissioner Vilda Vera Mayuga told THE CITY in a December 15, 2025 interview. The investigation concluded Starbucks prioritized profits over workers’ legal rights to stable schedules and full-time opportunities.
What Does Mayor Adams Say About the Settlement?
“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,” Mayor Eric Adams stated in the December 1, 2025 announcement. “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.”
Adams emphasized that New York City remains a place where employees are treated fairly and working-class people can get ahead. The settlement brings the Adams administration’s total secured worker relief to nearly $90 million from various companies.
What Is Starbucks’ Response?
Starbucks issued a statement on December 1, 2025 acknowledging the settlement while defending its practices. The company stated it remains “committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where it does business.”
Starbucks spokesperson Jaci Anderson argued the Fair Workweek Law is “notoriously challenging to manage and this isn’t just a Starbucks issue, nearly every retailer in the city faces these roadblocks.” The company claims violations are “about compliance” and “not about withholding wages or failing to pay partners.”
In a public statement, Starbucks explained: “Even minor schedule changes can trigger a violation under the law. For example, if a partner who normally works 20 hours a week calls out for three scheduled hours and we ask someone else to cover that time, that could be considered a violation. The law treats almost any adjustment as a potential issue.”
How Do Workers Claim Their Backpay?
Workers who worked for Starbucks in NYC from July 4, 2021 through July 7, 2024 will automatically receive checks in the mail this winter. No application is required.
Workers who experienced violations after July 7, 2024 must file a complaint to claim compensation:
Online: Visit nyc.gov/site/dca/workers/worker-rights.page
By phone: Call 311 (212-NEW-YORK outside NYC)
Complaints can be filed anonymously. It is illegal for Starbucks to retaliate against workers who file complaints or exercise their rights under the Fair Workweek Law.
What About Store Closures and Layoffs?
The settlement includes provisions for workers laid off during Starbucks’ recent store closures. Under NYC law, laid-off fast food workers have the right to reinstatement at other open locations.
DCWP is monitoring Starbucks’ compliance with reinstatement obligations and assisting workers who want their jobs back. Workers experiencing violations of reinstatement rights should contact DCWP online or call 311.
In September 2025, Starbucks announced plans to close hundreds of stores across North America, including 59 unionized locations. The NYC settlement protects workers affected by these closures.
What Do Labor Leaders Say?
“This historic settlement marks a major victory for thousands of Starbucks baristas across New York City,” said Lynne Fox, international president of Workers United. “For too long, Starbucks has acted with impunity: manipulating schedules, disrespecting workers, and ignoring legal protections put into place by New Yorkers to protect working people from unfair business practices.”
Fox emphasized the settlement money will help baristas make ends meet this winter while they continue fighting for a fair union contract.
“The settlement money awarded to Starbucks baristas will help them make ends meet this winter. Thousands of Starbucks baristas in New York City and across the country remain on an Unfair Labor Practices strike and are demanding a fair union contract that memorializes job protections, better staffing, and higher pay,” Fox stated in the December 1, 2025 announcement.
Brendan Griffith, president of New York City Central Labor Council, AFL-CIO, added: “Starbucks workers deserved predictable hours and a fair shot at full-time work, and this settlement delivers real accountability. We applaud DCWP for enforcing the Fair Workweek Law and making sure thousands of working people get money they were denied.”
What Do Starbucks Workers Say?
“Baristas are what keep Starbucks running. From Astoria to South Slope, we are the ones who create the warm, welcoming environment Starbucks advertises,” said Kai Fritz, a Brooklyn barista, in the December 1, 2025 statement. “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.”
Fritz emphasized the settlement demonstrates the power workers have when they stand together. “This settlement is a step in the right direction. 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.”
How Does This Compare to Other NYC Worker Settlements?
The $38.9 million Starbucks settlement is the largest worker protection settlement in New York City history. It surpasses:
Chipotle (2022): $21 million total ($20 million restitution + $1 million penalties) covering 13,000+ workers for Fair Workweek violations from 2017-2022.
Panda Express: $3.45 million settlement for scheduling violations.
Paris Baguette: $2.97 million settlement for Fair Workweek violations.
According to Daily Coffee News analysis, at least 13 fast food companies have reached settlements totaling more than $71.6 million in restitution and civil penalties since the Fair Workweek Law took effect in 2017.
The Starbucks settlement alone accounts for more than half of all Fair Workweek enforcement recoveries in NYC history.
What Happens If Starbucks Violates the Law Again?
The settlement requires Starbucks to comply with the Fair Workweek Law going forward. DCWP will monitor the company’s future employment practices, particularly regarding scheduling, layoffs, and store closures.
If Starbucks commits additional violations, workers can file complaints with DCWP for investigation and enforcement action. Repeat violations could result in additional penalties and increased scrutiny from city agencies.
The settlement does not prevent individual workers from pursuing separate legal claims for violations not covered by the settlement period.
What Is the Timing for the Nationwide Starbucks Strike?
The NYC settlement was announced December 1, 2025, the same day Mayor-elect Zohran Mamdani and Senator Bernie Sanders joined striking Starbucks workers at a Park Slope picket line.
The nationwide strike by Starbucks Workers United began in late November 2025 and continues into December 2025, affecting 85 cities across the United States. Thousands of unionized Starbucks workers are striking over the company’s alleged refusal to finalize a collective bargaining agreement.
Wage and scheduling issues remain major sticking points in contract negotiations. The NYC settlement addresses scheduling violations but does not resolve the broader labor dispute between Starbucks and Workers United.
What Did Political Leaders Say at the Strike?
“Solidarity, as much as we speak of it, we have to remember is not an abstract concept,” Mayor-elect Zohran Mamdani said at the December 1, 2025 Park Slope picket line. Mamdani walked the line with Senator Bernie Sanders, showing support for striking workers.
Senator Sanders has been a vocal supporter of Starbucks workers’ unionization efforts nationwide. His appearance at the NYC picket line on the same day as the settlement announcement signaled strong political support for worker protections.
What Rights Do NYC Fast Food Workers Have?
NYC’s Fair Workweek Law provides comprehensive protections for fast food workers:
Schedule advance notice: Workers must receive schedules 14 days in advance.
Premium pay for changes: Last-minute schedule changes require additional compensation.
Right to decline extra hours: Workers cannot be forced to work additional shifts.
First opportunity at new shifts: Employers must offer additional hours to existing part-time workers before hiring new employees.
Protection against hour reductions: Employers cannot reduce hours by more than 15% without just cause.
No clopening shifts: Workers cannot be scheduled to close and open without written consent and $100 premium.
Reinstatement rights: Laid-off workers have the right to reinstatement at other locations.
Anti-retaliation protections: Employers cannot punish workers for exercising their rights.
The Workers’ Bill of Rights, a multilingual guide available at nyc.gov/dcwp, summarizes all workplace protections in NYC, including paid sick leave, temporary schedule changes, and delivery worker laws.
How Can Workers Report Violations?
Workers experiencing Fair Workweek violations can take action immediately:
File online: Visit nyc.gov/site/dca/workers/worker-rights.page
Call 311: Available 24/7 (212-NEW-YORK outside NYC)
File anonymously: Workers can report violations without revealing their identity
Get free legal help: DCWP can connect workers with legal resources
No retaliation allowed: It is illegal for employers to punish workers who file complaints
DCWP enforces multiple workplace laws beyond Fair Workweek, including Paid Safe and Sick Leave, Temporary Schedule Change Law, and Delivery Worker Laws. The agency also provides resources for minimum wage violations, discrimination, and other workplace issues enforced by state and federal agencies.
What Does This Mean for Worker Protection Enforcement?
The Starbucks settlement demonstrates NYC’s commitment to aggressive enforcement of worker protection laws. DCWP Commissioner Mayuga emphasized: “To workers: understand that the government is on your side. DCWP is going to be looking into matters and getting the restitution that you deserve, and we’re going to be enforcing the law — it doesn’t matter how big a company is, if it’s a multi-billion-dollar company. We are committed to holding these companies accountable.”
The settlement sends a clear message that company size and resources do not shield employers from accountability for labor law violations. Starbucks’ argument that the Fair Workweek Law is “notoriously challenging” did not prevent enforcement action or reduce penalties.
“All workers deserve to be treated with dignity,” Commissioner Mayuga stated in the December 1, 2025 announcement. “We are proud to stand up for our neighbors when a multibillion-dollar company like Starbucks chooses to systematically violate their employees’ rights.”
What Should Employers Learn From This Case?
The Starbucks settlement provides clear lessons for NYC employers:
Compliance is mandatory: The Fair Workweek Law is not optional, regardless of operational challenges.
Systemic violations trigger massive penalties: Over 500,000 violations resulted in $38.9 million in penalties and restitution.
Worker complaints lead to investigations: DCWP began investigating after dozens of complaints about several locations, then expanded citywide.
Technology does not excuse violations: Despite sophisticated scheduling software, Starbucks failed to comply with basic legal requirements.
Size does not matter: Even multibillion-dollar corporations face full enforcement.
Restitution is calculated per violation: $50 per week multiplied by 15,000+ workers over three years creates massive liability.
Employers should implement compliance systems that prioritize worker rights over operational convenience. The cost of compliance is significantly lower than the cost of violations.
Frequently Asked Questions
How much money will I receive from the Starbucks settlement?
You will receive $50 for each week you worked at any NYC Starbucks location from July 4, 2021 through July 7, 2024. For example, if you worked 78 weeks (about 18 months) during this period, you’ll receive $3,900. Checks will be mailed this winter automatically—no application required.
Do I need to file a claim to get my backpay?
No. If you worked for Starbucks in NYC from July 4, 2021 through July 7, 2024, you will automatically receive a check in the mail this winter. Only workers who experienced violations after July 7, 2024 need to file a complaint with DCWP to claim additional compensation.
What if I no longer work at Starbucks?
You still qualify for backpay if you worked at any NYC Starbucks location during the violation period (July 4, 2021 through July 7, 2024). Former employees will receive the same $50 per week payment as current employees. Starbucks has your employment records and will send checks to the address on file.
Can Starbucks retaliate against me for this settlement?
No. It is illegal under NYC law for employers to retaliate against workers who exercise their rights, file complaints, or receive compensation from settlements. If you experience any retaliation, file a complaint with DCWP immediately at nyc.gov/site/dca/workers/worker-rights.page or call 311.
What if I was laid off when my store closed?
You have reinstatement rights at other open NYC Starbucks locations under the Fair Workweek Law. The settlement specifically protects laid-off workers and requires DCWP to monitor Starbucks’ compliance with reinstatement obligations. Contact DCWP online or call 311 if you want reinstatement or are having problems exercising your rights.
How does this affect the ongoing Starbucks strike?
The $38.9 million settlement addresses past Fair Workweek violations in NYC but does not resolve the nationwide labor dispute between Starbucks and Workers United. Unionized workers continue striking for a fair contract covering wages, schedules, and working conditions. The settlement money helps NYC baristas financially while they fight for long-term contract protections.
What should I do if Starbucks violates the law again?
File a complaint immediately with DCWP at nyc.gov/site/dca/workers/worker-rights.page or call 311. You can file anonymously. DCWP will investigate and take enforcement action. The settlement requires Starbucks to comply with the Fair Workweek Law going forward, and DCWP is monitoring the company’s practices.
Does this settlement cover Starbucks locations outside NYC?
No. This settlement only covers violations at NYC Starbucks locations. However, other cities and states have similar scheduling laws. Workers in other locations experiencing scheduling violations should contact their local labor enforcement agencies or consult with employment attorneys about their rights.
Disclaimer
This article provides general information about the Starbucks NYC settlement and Fair Workweek Law enforcement. It does not constitute legal advice. Eligibility for backpay depends on specific employment dates and locations as defined in the settlement agreement. Workers with questions about their individual situations should contact DCWP directly at nyc.gov/site/dca/workers/worker-rights.page or call 311.
Information is current as of December 22, 2025. Settlement distribution timelines and enforcement actions are subject to change. For the most current information, visit the official NYC Department of Consumer and Worker Protection website.
For questions about workplace rights, violations, or filing complaints, contact NYC Department of Consumer and Worker Protection online or call 311 (available 24/7).
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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