ToplineWith allegations of unfair labor practices a major point of contention in the ongoing “Red Cup Rebellion” strike, Starbucks has agreed to pay $35.5 million to more than 15,000 New York City workers, plus $3.4 million in civil penalties, for violating New York City’s Fair Workweek Law, according to New York City Department of Consumer and Worker Protection (DCWP).Mayor-elect Zohran Mamdani and U.S. Sen. Bernie Sanders join striking Starbucks workers on a picket line outside a Starbucks store on 4th Av ...

Core Viewpoint - Starbucks will pay approximately $35 million to settle claims regarding unstable schedules and arbitrary hour reductions for over 15,000 workers in New York City [1][6] Group 1: Settlement Details - The settlement includes $35 million for affected workers and an additional $3.4 million in civil penalties [1] - Most affected hourly employees will receive $50 for each week worked from July 2021 through July 2024, with potential compensation for violations after that [5] - The settlement guarantees reinstatement opportunities for employees laid off during recent store closures in the city [5] Group 2: Investigation Background - The city initiated an investigation in 2022 following numerous worker complaints against several Starbucks locations, which later expanded to hundreds of stores [7][10] - Findings revealed that most Starbucks employees did not receive regular schedules and experienced hour reductions exceeding 15%, complicating their ability to manage personal commitments [8] Group 3: Company Response and Context - A company spokeswoman emphasized Starbucks' commitment to compliance with local laws, acknowledging the complexities of the city's Fair Workweek law [2][4] - The ongoing nationwide strike by Starbucks' union, which began last month, adds context to the settlement and the company's labor relations challenges [9]