Starbucks will pay nearly $39 million to settle claims it violated New York City labor laws by cutting hours and denying stable schedules, according to the Associated Press.
Over 15,000 hourly workers will get compensation—$50 for each week worked from July 2021 to July 2024. The city’s investigation found the company frequently slashed hours and blocked extra shifts, forcing many into unwanted part-time roles.
The settlement also includes $3.4 million in penalties and offers reinstatement to employees laid off during recent store closures. Starbucks agreed to comply with NYC’s Fair Workweek law going forward.
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