Starbucks will dole out more than $38 million to workers after New York City Mayor-elect Zohran Mamdani and Sen. Bernie Sanders (I-VT) joined striking employees.
Mayor Eric Adams announced the settlement on Monday, which is the largest in the city’s history.
“Starbucks violated the Fair Workweek Law and thousands of employees were denied predictable schedules and additional shifts they had a right to,” he wrote on X.
“Thanks to our work, they’re able to get some money back. It doesn’t matter how big your business is — if you violate our workers’ rights, you will pay the price,” he added.
The city’s Department of Consumer and Worker Protection launched an investigation into the company in 2022 after “dozens” of worker complaints at several Starbucks locations. The DCWP revealed the company rarely gave workers routine schedules, reduced employees’ hours by 15%, and did not allow workers to pick up extra shifts.
Under the settlement, employees will receive $50 for each week worked from July 4, 2021, to July 7, 2024.
Mamdani and Sanders carried signs and shouted alongside workers on the picket line in a Brooklyn strike.
In a post on X, Mamdani lamented the pay of Starbucks CEO Brian Niccol during his fight for higher wages for Starbucks workers.
“Starbucks CEO Brian Niccol made $95 million last year. His workers are striking for the bare minimum. Glad to be on the right side of the picket line with them,” he wrote on X. Mamdani said he was there to show solidarity.
“I want to do everything I can to show my solidarity,” he told reporters.
Starbucks CEO Brian Niccol made $95 million last year. His workers are striking for the bare minimum. Glad to be on the right side of the picket line with them. pic.twitter.com/XFGir72i46
— Zohran Kwame Mamdani (@ZohranKMamdani) December 1, 2025
Sanders lauded Mamdani’s campaign and what it has done for workers at the rally. The Vermont senator has been an ardent ally of Mamdani.
“You’re seeing more and more candidates standing up, exactly the same way Zohran did. And they are standing up and saying that we need an economy that works for all,” Sanders said.
The strike comes after Starbucks workers launched ‘Red Cup Rebellion’ last month, named after the company’s signature holiday cups. The company’s union, Starbucks Workers United, clamored for higher pay for workers. The strike came after workers and the company failed to secure a collective bargaining agreement.
“We have been clear that a wage increase floor in future years is insufficient to meet the needs of baristas who are struggling right now to pay bills and get enough hours,” Michelle Eisen, a 15-year barista and union delegate, said in April after contract negotiations collapsed.
The company said the New York City settlement was more about “compliance” with New York City law than it was about “unpaid wages.”
‘RED CUP REBELLION’: STARBUCKS UNION LAUNCHES STRIKE IN OVER 40 CITIES
“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,” the company said in a statement.
“This compensation is about compliance, not unpaid wages,” they added. “We support the intent of the law and remain committed to compliance, but its complexity creates real-world challenges.”