New York City has secured a historic $38.9 million settlement from coffee giant Starbucks, concluding a multi-year investigation into labour practices. The outgoing administration of Mayor Eric Adams announced the agreement, which includes a $35.5 million payout to at least 15,000 affected workers for violations of the city's Fair Workweek Law.
A Record Settlement for Scheduling Violations
This settlement, described as the largest of its kind in the city's history by the Department of Consumer and Worker Protection, stems from Starbucks' failure to comply with regulations designed to protect fast-food employees. The Fair Workweek Law, implemented in 2017, mandates that companies provide workers with their schedules at least 14 days in advance, prohibiting last-minute cancellations and on-call shifts.
Mayor-elect Zohran Mamdani, a democratic socialist set to take office on January 1, celebrated the victory alongside striking, unionized baristas. Flanked by Vermont Senator Bernie Sanders, Mamdani used the moment to pledge his administration's unwavering support for labour.
"When I become the mayor of this city, I am going to continue to stand on picket lines with workers across the five boroughs," Mamdani declared. He emphasized his intent to build an administration characterized by being "there for workers every single step of the way" and to use the mayor's platform to hold corporations accountable for labour law breaches.
Broader Context of National Labour Organizing
This landmark settlement arrives amid a significant national unionization push within Starbucks. Employees at more than 600 corporate-owned stores across the United States are currently negotiating their first collective bargaining agreements. The union Workers United now represents approximately 11,000 Starbucks employees advocating for improved pay and benefits.
In a statement, Starbucks expressed support for the goals of the Fair Workweek Law but criticized its complexity, arguing that even minor schedule adjustments can trigger violations. The company stated it is now providing more predictable schedules while striving to comply with local regulations.
Outgoing Mayor Eric Adams hailed the "landmark" agreement as a move that puts tens of millions of dollars back into the pockets of hard-working New Yorkers. Meanwhile, on the picket line, Mamdani framed the baristas' ongoing efforts not as "demands of greed" but as "demands for decency," signaling a potentially more labour-friendly era at City Hall.
