New York.- The American chain Starbucks and the city of New York reached a historic agreement this Monday whereby the company will pay a total of 35.5 million dollars to more than 15,000 employees whose working hours were reduced and schedules changed without prior notice, as required by law.
Starbucks violated the Fair Workweek Law according to a statement from the Mayor's Office, which highlights that this is the largest worker protection agreement in the history of this city.You may be interested in: Starbucks also says goodbye to Russia
Explains that a multi-year investigation by the Department of Consumer and Worker Protection (DCWP) found that this company committed more than half a million violations of the law since 2021 by "illegally" denying thousands of workers in more than 300 locations the right to stable and predictable schedules. The statement also denied them the right to work extra hours and earn more. The agency initiated the investigation in 2022 after receiving dozens of complaints from workers and based it on the evidence collected, including reports from hundreds of employees and company data. The Department of Consumer and Worker Protection discovered a pattern of systemic violations at some locations and then expanded the investigation to all Starbucks in the city, according to the joint statement. The agreement stipulates that the coffee shop chain will pay over $35.5 million in wage restitution to more than 15,000 workers, as well as any additional worker who comes forward, and $3.4 million in fines imposed by the city. "When this company cuts our hours, understaffs our stores, and destroys our union, it makes it harder for us to do our jobs and create that great experience for customers," said Kai Fritz, a Starbucks barista. With this agreement, almost 90 million dollars that were owed to workers from different companies have been obtained in the last four years. According to the DCWP, the Fair Workweek Law states that fast food employers must give workers regular schedules, 14 days in advance, that are consistent with the regular schedule, pay for schedule changes, the opportunity to refuse to work those extra hours, and the opportunity to work available shifts before hiring someone else. "No matter how big your business is or how much money your company makes, if you violate the rights of our workers, you will pay the price," warned Mayor Eric Adams in the statement. Meanwhile, the popular chain responded to the agreement with the city. "The city's laws remain complex and unchanged, but our focus hasn't changed: we are committed to creating the best employment in retail. Since these statements, we have invested $500 million in improving the experience of our partners as part of our 'Back to Starbucks' strategy. These investments not only ensure regulatory compliance, but also improve the experience of our partners in our coffee shops," the company told CBS. "Today, more partners get schedules that fit their lives, making it easier to combine availability and preferences while complying with local laws," the coffee chain also noted.







