Starbucks will pay $38.9 million [cerca de R$ 207 milhões] in employee restitution and civil fines following a settlement with New York City. The network will allocate US$35.5 million [cerca de R$ 186 milhões] to more than 15 thousand workers and will pay US$3.4 million [cerca de R$ 18 milhões] in civil fines and costs, the city said Monday, Dec. 1.
The settlement was reached after the Department of Consumer and Worker Protection (DCWP) found half a million violations of the New York Fair Work Hours Law by Starbucks since 2021.
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Most Starbucks employees in New York City who worked in hourly positions will receive $50 per week worked between July 4, 2021 and July 7, 2024.
Starbucks said on its blog that while it supports the intent of the city’s law, its complexity creates real-world challenges. “To move forward, Starbucks and DCWP have agreed to a settlement,” the company said. “This compensation is about compliance, not unpaid wages.”
The DCWP investigation, which began in 2022, found that Starbucks illegally reduced employee hours, denied employees the opportunity to take on additional shifts, and failed to provide regular schedules to its employees.
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The city said it will monitor Starbucks’ compliance with the law, including its obligation to reinstate employees at now-closed Starbucks stores. Source: Dow Jones Newswires.
*Content translated with the help of Artificial Intelligence, reviewed and edited by the Broadcast editorial team, Grupo Estado’s real-time news system
