"Starbucks" Under Fire: Millions in Unpaid Wages Spark Scandal

The Editors, 04.12.2025

When one of the world’s most recognizable coffee chains suddenly reaches deep into its pockets, generosity is seldom the reason. After violating New York labor laws, Starbucks has been ordered to pay $38.9 million—compensation that includes direct payments to the employees affected.

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The U.S. coffee giant Starbucks has reached a major settlement with the City of New York, agreeing to pay $38.9 million after a three-year investigation into violations of labor laws. Of that amount, $35.5 million will go directly to more than 15,000 employees. Each will receive a retroactive payment of $50 for every week worked between July 2021 and July 2024—a result of the city’s probe into Starbucks’ compliance with the fair workweek law.

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