Starbucks Faces New Lawsuit from NYC Over Alleged Wrongful Termination

Starbucks workers protest union rights

New York City’s Department of Consumer and Worker Protection (DCWP) has filed a new lawsuit against Starbucks, accusing the coffee giant of illegally firing a long-time barista. The case, filed at the Office of Administrative Trials and Hearings, alleges the company terminated Karmen Rich in December 2023 without a valid reason, violating the city's just cause protections under the Fair Workweek Law.

This marks the third wrongful termination suit brought by the DCWP against Starbucks. The department is seeking restitution, backpay for the employee, and civil penalties. In a statement, DCWP Commissioner Vilda Vera Mayuga affirmed the city's commitment to enforcing worker protection laws, stating, "We will never hesitate to take action to secure justice for our neighbors." Ms. Rich commented that all workers deserve fair treatment, expressing disappointment that a company of Starbucks's size has fallen short in protecting its employees.

This latest legal challenge comes on the heels of other enforcement actions against the corporation. Earlier this year, Starbucks was one of five major businesses involved in a broad settlement that resolved multiple violations of New York City's workplace laws. The agreements secured a combined total of over $2.6 million in relief for more than 3,400 workers for issues that included failing to provide adequate notice for schedules and altering work hours without consent.

The specific actions in New York are unfolding amid a nationwide landscape of labor disputes involving the coffee chain. The company continues to face numerous legal battles with the National Labor Relations Board (NLRB) across the country over allegations of unfair labor practices related to union organizing efforts by Workers United. While the company and the union have reported progress in contract negotiations, these city-level lawsuits highlight the sustained regulatory and legal pressure Starbucks is under regarding its employment practices.