The New York City Department of Consumer and Worker Protection has filed a lawsuit against Starbucks Corporation, alleging that the company wrongfully terminated a longtime barista in violation of the city’s “just cause” protections as outlined in the Fair Workweek Law.
This lawsuit is the third of its kind initiated by the DCWP against the coffee giant, indicating a troubling trend in how the company manages its employees.
According to the lawsuit, Karmen Rich was fired on Dec. 27, 2023. An investigation found that Starbucks had allegedly failed to provide Rich just cause for her dismissal.
Vilda Vera Mayuga, commissioner of DCWP, announced the lawsuit during a press briefing, expressing disappointment over Starbucks’ actions.
“We’re dismayed to see Starbucks wrongfully terminate yet another worker, and we will never hesitate to take action to secure justice for our neighbors,” Mayuga said, noting the significance of the Fair Workweek Law. “Any fast food worker who believes they’ve been fired unfairly should contact us immediately.”
Starbucks asserted that Rich was fired for not adhering to policies; however, the DCWP’s investigation indicated that she had followed all relevant protocols. Under New York City law, a fast food employee cannot be terminated for a single policy violation unless it involves dangerous or illegal conduct.
“I was devastated to lose my job over something that wasn’t true,” Rich said. “Starbucks is a multinational company whose success is built on the hard work of hourly employees who keep the business running every day. All workers deserve to be treated with dignity, respect, and fairness. It’s disappointing to see a company of this size fall short in taking care of the very people who make its profits possible.”
According a Starbucks spokesperson, Rich was terminated over time theft, falsification of a company document, and other related issues, which are considered “egregious conduct.” They stand by their decision and are prepared to defend their actions.
“At Starbucks, our success starts and ends with our partners (employees). We are all partners; we believe in holding ourselves to the highest standards,” the spokesperson said.
In its filing at the Office of Administrative Trials and Hearings, the DCWP is not only seeking civil penalties of $2,500 in accordance with the Fair Workweek Law but is also demanding that Starbucks pay Rich the backpay and other compensation owed to her for lost work.
Manhattan Council Member Julie Menin, chair of the committee on Consumer & Worker Protection, emphasized the importance of enforcing worker rights.
“New York City law is clear that workers have rights, and there are consequences for violating those rights that can result in civil penalties, restitution, and backpay,” Menin said. She praised Commissioner Mayuga and the DCWP for their commitment to upholding the Fair Workweek Law, a historic piece of legislation aimed at protecting workers’ rights within the fast food industry.
Another local leader, Council Member Carmen De La Rosa, chair of the Committee on Civil Service and Labor, commends DCWP’s efforts to defend workers’ rights.
“So long as corporations attempt their predatory practices in our city, Fair Workweek laws will remain a consistent safeguard and compensatory remedy for our workers,” De La Rosa said.
Starbucks locations have experienced quite a bit of pushback from their employees over the years. More than two dozen Starbucks baristas across New York City filed complaints against the coffee giant in 2023, alleging violations of the city’s Fair Workweek Law, which requires employers to provide work schedules at least two weeks in advance.
Supported by the newly-formed union, Starbucks Workers United, the employees gathered in Manhattan with former Council Member Marjorie Velazquez to raise awareness of their claims. The complaints, filed with the Department of Consumer Affairs, came from at least 27 workers at 23 locations and primarily focused on scheduling discrepancies. Starbucks has defended its practices, stating it follows local laws, while baristas express frustration over the unpredictability of their work hours. The ongoing situation draws parallels to a recent settlement involving Chipotle, raising concerns about broader violations within the company.
The Fair Workweek Law, in place since November 2017, fortifies protections for fast food workers. It makes it illegal for employers to fire or significantly reduce the hours of employees who have completed a 30—day probationary period without just cause. The law mandates that employers provide a written notice explaining the reasons for discharge or significant hour reductions, reiterating that any worker who loses a scheduled shift is entitled to premium pay.
The DCWP has a history of vigorously responding to violations of the Fair Workweek Law, having processed over 990 complaints since the law’s enactment. As a result of its enforcement efforts, the organization has secured nearly $34.5 million in combined fines and restitution for over 26,800 workers.
