At Starbucks, we are committed to operating responsibly and in compliance with all applicable local laws and regulations in every market where we do business. New York City’s Fair Workweek law aims to give hourly workers predictable schedules and stability – which is a good goal, but the rules are complex. They require individual fixed schedules that can’t change by more than 15% week to week, limit last-minute changes or swaps, and mandate extra pay for certain adjustments. We support the intent of the law and remain committed to compliance, but its complexity creates real-world challenges. 

Here’s the reality: Even minor schedule changes can trigger a violation under the law. For example, if a partner who normally works 20 hours a week calls out for three scheduled hours and we ask someone else to cover that time, that could be considered a violation. The law treats almost any adjustment as a potential issue – even starting a shift two hours later than planned, even if the total hours and pay stay the same. 

Every change creates a domino effect – even when partners swap shifts for a doctor’s appointment, audition, or family obligation. Each adjustment has to be documented and approved, which makes compliance challenging and limits the flexibility many partners value. And we’re not alone – other food and beverage retailers face the same hurdles. Since this law went into effect, employers have paid tens of millions of dollars in settlements reflecting the complexity of compliance across the industry. 

At Starbucks, we take these requirements seriously and despite our best efforts and well-intentioned coffeehouse partners, the New York City Department of Consumer and Worker Protection (DCWP) raised instances of violations between July 2021 and June 2024.  

While the NYC laws remain unchanged and complex, our focus hasn’t shifted – we’re committed to creating the best job in retail and to ensuring our practices follow all laws.  

To move forward, Starbucks and DCWP have agreed on a settlement. These violations are not about withholding wages or failing to pay partners, but as part of the agreement, some current and former partners will receive payouts. This compensation is about compliance, not unpaid wages. Starbucks will share details directly with those recipients in the coming weeks. 

Since these claims, we’ve invested $500 million in improving the partner experience as part of our Back to Starbucks strategy. That means bigger rosters, better schedules, and upgrades to our scheduling tools like Automated Regular Scheduling within Starbucks Partner Hours. We’ve also added training and technology to help partners in New York City – and across North America—get the hours they want, when they want them via our newly launched Shift Marketplace. These investments not only ensure compliance – they make the experience better for partners in our coffeehouses. 

Today, more partners are getting schedules that fit their lives, making it easier to match availability and preferences while staying aligned with local laws like Fair Workweek. In fact, our recent partner survey data suggests nearly 85% of partners are consistently getting the shifts they want and we’re seeing record high shift completion rates across the board. 

Providing the best job in retail means more than just a paycheck – it’s about creating real opportunities and providing real support for our partners. Today, our hourly partners earn an industry-leading average of $30 in pay and benefits. And those benefits are designed around what matters most: comprehensive healthcare, company equity, up to 18 weeks of paid parental leave, and the chance to earn a four-year degree with tuition paid upfront – all for partners averaging at least 20 hours a week. It’s a job people choose and stay with. Our turnover is less than half the industry average, and every year, more than a million people apply to join us.