Summary
Starbucks is set to pay $35 million to over 15,000 workers in New York City to resolve issues regarding unstable work schedules and unfair hour cuts. The announcement comes as Starbucks employees continue a strike at multiple locations across the U.S. that began the previous month. Union representatives and workers are seeking better working conditions and have yet to agree on a contract with Starbucks after employees at around 550 stores opted to unionize.
Key Facts
- Starbucks agreed to pay $35 million to settle claims related to unstable work schedules for over 15,000 NYC workers.
- The settlement includes $3.4 million in civil penalties.
- Workers are striking for better job conditions, including more stable hours and increased staffing.
- About 550 of Starbucks' 10,000 company-owned stores in the U.S. are unionized.
- Mayor-elect Zohran Mamdani and U.S. Sen. Bernie Sanders joined workers on the picket line in Brooklyn to support their cause.
- The settlement requires Starbucks to comply with NYC's Fair Workweek law.
- Affected employees will receive $50 for each week worked between July 2021 and July 2024.
- Starbucks expressed readiness to negotiate with the union and noted challenges in managing compliance with local laws.
