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Starbucks to Pay $38.9M After NYC Says It Violated Predictable-Scheduling Law Over 500,000 Times

Starbucks will pay $38.9 million to settle New York City's charge that it violated the city's 2017 predictable-scheduling law more than 500,000 times over three years. The settlement sends $35.5 million to over 15,000 hourly workers and $3.4 million for penalties and costs. Eligible employees will receive $50 for each week worked between July 4, 2021 and July 7, 2024. The company says it supports the law's intent but says strict compliance can be difficult in routine operations.

12:17 PM, 12/02/2025Economy
Starbucks to Pay $38.9M After NYC Says It Violated Predictable-Scheduling Law Over 500,000 Times

Starbucks has agreed to pay $38.9 million to resolve New York City's claim that the company repeatedly violated a local law requiring predictable and stable schedules for hourly workers. City officials said the violations occurred more than 500,000 times over a three-year period, and the payment ends a three-year investigation into the company's scheduling practices.

Settlement details: Under the agreement, Starbucks will pay $35.5 million to more than 15,000 current and former hourly workers and an additional $3.4 million in penalties and costs, for a total of $38.9 million. The city described the settlement as the largest involving a worker-protection law in New York City's history.

The city’s review found that Starbucks frequently failed to provide regular schedules, reduced employees’ scheduled hours without written consent, and assigned shifts to newly hired staff without first offering those shifts to existing employees — all actions the city says violated the 2017 predictable-scheduling law.

"The law treats almost any adjustment as a potential issue — even starting a shift two hours later than planned, even if the total hours and pay stay the same," Starbucks said in a statement, noting it supports the intent of the law but that strict compliance can be difficult in everyday operations.

The mayor’s office said affected workers should receive checks this winter. Each eligible employee will be paid $50 for every week they worked in an hourly position between July 4, 2021 and July 7, 2024.

New York City's law was among the first in the U.S. to limit so-called on-call scheduling, a practice in which employers summon or cancel workers with little notice. Similar protections have been adopted in Oregon and in several U.S. cities, including Los Angeles, Chicago and San Francisco. Business groups have criticized these laws as difficult to implement and warned they may prompt employers to reduce staffing or cut jobs.

By Daniel Wiessner

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Starbucks to Pay $38.9M After NYC Says It Violated Predictable-Scheduling Law Over 500,000 Times - CRBC News