News

Starbucks pays up to settle labor suit

December 20, 2019

Chipotle isn't the only major fast casual chain battling labor disputes this week in New York. Starbucks Corp will pay $176,000 in restitution to employees to settle a lawsuit that accused the coffee giant of illegally requiring New York City employees to find substitutes when they needed to use sick leave, according to Reuters. 

New York Attorney General Letitia James, New York City Mayor Bill De Blasio and the city's consumer affairs commissioner Lorelei Salas announced the settlement Thursday, saying that the chain must also prominently post educational posters about the city's sick leave law for its more than 8,000 New York City employees as well as detail its compliance within six months to regulators.

The settlement runs three years and could be extended if Starbucks violates it, according to Reuters.

As of press time, Starbucks had not responded to a request for comment from Fast Casual, but has since changed its sick leave policy.

Chipotle Mexican Grill is also facing allegations in New York with Peter Robb, general counsel of the National Labor Relations Board, filing a complaint on Dec. 12, accusing the chain of firing an employee in retaliation for complaining about workplace problems and trying to organize with a union.

The action requested that Chipotle reimburse the fired employee for expenses incurred from work searches and for tax relief from any lump sum back-pay awards. 

Chipotle has until Dec. 26 to respond to the complaint. The hearing is scheduled for March 2 in New York.