Starbucks to pay NYC employees $176K over sick leave violations

Julie Littman | December 20, 2019

Starbucks to pay NYC employees $176K over sick leave violations
Starbucks has agreed to pay $176,000 and provide better oversight to settle a multi-year investigation into a policy that made New York City employees find replacements to cover for them when they called out sick, the city's mayor announced Dec. 19. The coffee chain will set up a $150,000 fund set up by a third-party claims administrator to cover current and former employees who worked in New York City Starbucks locations from Jan. 1, 2015 to Dec. 31, 2016, who were required to find a replacement. It will pay the remaining $26,000 to the Department of Consumer and Worker Protection to be distributed to 23 workers who were identified during the administration. The settlement also requires the coffee chain to post education posters about the city’s sick leave policy in all New York City stores, to provide plain language information on its sick leave policy to more than 8,000 employees in the city and follow up within six months describing its compliance to city regulators. The agreement will run for at least three years.

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