In a major boost for labour rights, Starbucks agreed to a settlement worth approximately £26.8 million ($35.5 million) with New York City on 1 December 2025, compensating over 15,000 workers for Fair Workweek Law violations. The settlement, hailed as the largest worker protection deal in the city's history, comes after years of mounting pressure on the coffee giant.
New York City mayor-elect Zohran Mamdani and US Senator Bernie Sanders joined picketing baristas in Brooklyn that day, amplifying the ongoing 'Red Cup Rebellion' strike launched on 13 November 2025.
Origins of the Fair Workweek Violations
New York City's Department of Consumer and Worker Protection began investigating Starbucks in 2021 after employee complaints. The probe uncovered over 500,00 violations at more than 300 locations from 4 July 2021 to 7 July 2024, including arbitrary hour cuts without consent and failure to offer extra shifts to existing staff first.
The 2017 Fair Workweek Law requires 14 days' notice for schedule changes exceeding 15 per cent of hours and prioritises current employees for extra shifts. These practices left workers unable to plan reliably, affecting childcare and secondary jobs. Unionisation efforts began with a Buffalo store vote on 1 December 2021, eventually reaching 550 of 10,000 US company stores by 2025. Yet contract talks stalled, prompting the unfair labour practice strike dubbed the 'Red Cup Rebellion'.
Over 1,000 baristas at 65 initial stores walked out on 13 November 2025, expanding to 120 sites by early December. Starbucks Workers United demands resolution of hundreds of charges against the company for union-busting.
Mamdani and Sanders Bolster the Picket Line
On 1 December 2025, mayor-elect Zohran Mamdani and Senator Bernie Sanders marched with striking workers outside a Park Slope Starbucks in Brooklyn, drawing crowds amid the settlement announcement. Mamdani, elected on 4 November 2025 as a democratic socialist, told supporters, 'These are not demands of greed — these are demands of decency.'
Sanders, who endorsed Mamdani's campaign, criticised the company: 'Starbucks has refused to sit down and negotiate a fair contract.' Their rally supported demands for higher wages, better conditions, and an end to erratic scheduling.
Mamdani urged a boycott earlier, posting on 14 November 2025: 'While workers are on strike, I won't be buying any Starbucks, and I'm asking you to join us. Together, we can send a powerful message: No contract, no coffee.'
Sanders echoed solidarity on X: 'Starbucks paid its new CEO $96 million for just four months of work. In four years, it has failed to sign a contract with nearly 12,000 of its union workers.'
Starbucks paid its new CEO $96 million for just four months of work.
— Bernie Sanders (@BernieSanders) November 28, 2025
In four years, it has failed to sign a contract with nearly 12,000 of its union workers.
This is what corporate greed is all about.
I stand with Starbucks workers. https://t.co/lgzCNeP9H6
Seattle's mayor-elect Katie Wilson also backed the action, amplifying the SBWU strike.
Breakdown of the £29.4 Million Settlement
Announced by Mayor Eric Adams and DCWP Commissioner Vilda Vera Mayugaon 1 December 2025, the settlement totals £29.4 million ($38.9 million). Of this, £26.8 million ($35.5 million) is restitution for over 15,000 workers, while £2.6 million ($3.4 million) covers penalties.
Affected hourly staff get £38 ($50) per week worked in the period, mailed this winter. For example, a worker employed for 78 weeks will receive £3,000 ($3,900). Claims after 7 July 2024 must be filed separately. Laid-off workers gain reinstatement priority.
Starbucks spokesperson Jaci Anderson said: 'This [law] is notoriously challenging to manage and this isn't just a Starbucks issue, nearly every retailer in the city faces these roadblocks.'
Adams stated: 'With this landmark settlement, we'll put tens of millions of dollars back into the pockets of hardworking New Yorkers.' Brendan Griffith noted: 'Starbucks workers deserved predictable hours... this settlement delivers real accountability.'
Despite the payout, strikes continue as SBWU presses for national agreements.
