NEW YORK — Starbucks has agreed to a settlement that will see the cafe chain pay $35 million to thousands of workers.
The employees, who were in New York City locations, claimed that the company would not provide stable schedules and arbitrarily cut their hours, The Associated Press reported.
The issue was found at 300 locations in the city, WABC reported.
Starbucks was also given a $3.4 million civil penalty in an agreement with New York’s Department of Consumer and Worker Protection, which brought the lawsuit, and will comply with the city’s Fair Workweek law.
“This (law) is notoriously challenging to manage and this isn’t just Starbucks issue, nearly every retailer in the city faces these roadblocks,” Starbucks spokeswoman Jaci Anderson said, according to the AP.
Each employee who was an hourly worker in New York City will get $50 for each week they worked from July 2021 to July 2024. Additional compensation may be awarded for people who worked for Starbucks in the Big Apple after July 2024, but they will have to file a complaint with the city’s department.
Those who were laid off will also get the opportunity to be reinstated at other locations, the AP reported.
“This settlement is a step in the right direction. It shows the power baristas have when we stand together and demand change,” barista Kai Fritz told WABC. “We are continuing to fight back against Starbucks’ greed and will not stop until we have a fair contract that ensures the support and protections we need to thrive.”
A strike against Starbucks, which started last month, continues at several locations across the country, the AP reported.