Consumer and Worker Protection311Search all NYC.gov websites
Department of Consumer and Worker Protection Files Lawsuit Against Starbucks for Wrongfully Terminating Employee
March 11, 2025
NEW YORK, NY – Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today announced that the Department filed a case at the Office of Administrative Trials and Hearings (OATH) against the Starbucks Corporation for violating the city’s “just cause” protections against wrongful termination under the Fair Workweek Law.
DCWP’s investigation found that Starbucks illegally fired longtime barista Karmen Rich on December 27, 2023, without just cause. DCWP is seeking civil penalties, as well as restitution and backpay for Ms. Rich as required under the law. This is the third wrongful termination lawsuit that DCWP has filed against Starbucks.
“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,” said DCWP Commissioner Vilda Vera Mayuga. “Any fast food worker who believes they’ve been fired unfairly should contact us immediately.”
“Starbucks is a multinational company that’s success is built on the hard work of hourly employees who keep the business running every day,” said Karmen Rich. “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.”
In early 2024, DCWP received a complaint from Karmen Rich alleging that Starbucks had illegally fired her, which DCWP quickly investigated. DCWP’s investigation found that Starbucks did not have just cause to fire Ms. Rich. Starbucks claimed that Ms. Rich was fired because she did not follow a policy. DCWP’s investigation found that, contrary to Starbucks’ claims, Ms. Rich followed all relevant policies. In New York City, except for dangerous or illegal conduct, a fast food employee cannot be fired for a single policy violation.
DCWP is seeking an order requiring Starbucks:
- Pay Ms. Rich all backpay and other compensation owed to her for lost work
- Pay $2,500 in civil penalties as required by the city’s Fair Workweek Law
“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,” said Council Member Julie Menin, Chair of the Committee on Consumer & Worker Protection. “I thank Commissioner Mayuga and the Department of Consumer and Worker Protection for enforcing our Fair Workweek Law and protecting employees. As the former Commissioner of the agency, I saw firsthand how critical enacting our historic Paid Safe and Sick Leave Law was for workers which created a healthier and more productive workforce.”
“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,” said Council Member Carmen De La Rosa, Chair of the Committee on Civil Service and Labor. Supporting workers’ rights educational campaigns to continue to confront unscrupulous employers only strengthens our resistance of immoral workplace operations. We commend DCWP for defending the wrongly dismissed employee and upholding the law.”
Under the Fair Workweek Law, it is illegal for fast food employers to fire or lay off workers who have completed a probation period of 30 days, or reduce their hours by more than 15 percent, without just cause. Whenever an employee is discharged or hours reduced by 15 percent or more, the employer must give the worker a notice of discharge in writing within five days which explains the reason. A discharged employee who loses a scheduled shift is entitled to premium pay for each lost shift.
The Workers’ Bill of Rights, a multilingual and comprehensive guide to rights in the workplace in New York City, summarizes the laws that protect workers and job applicants in New York City, regardless of immigration status. The Workers’ Bill of Rights includes information on rights enforced by DCWP, like Paid Safe and Sick Leave, the Fair Workweek Law, the Temporary Schedule Change Law, and the city’s Delivery Worker Laws, as well as rights enforced by other state and federal agencies, like minimum wage and the right to organize. It also includes information about who to contact for more information or with questions, as well as how to file a complaint. Workers and employers can visit nyc.gov/workers or call 311 (212-NEW-YORK outside New York City) for more information about the laws that DCWP enforces or to file a complaint. Complaints can be filed anonymously. It is illegal for employers to retaliate against employees for filing complaints.
Since the Fair Workweek Law went into effect in November 2017, DCWP has received more than 990 complaints about Fair Workweek, closed more than 390 investigations, and obtained resolutions requiring nearly $34.5 million in combined fines and restitution for more than 26,800 workers.
DCWP’s case was handled by Senior Staff Counsel Emily Whalen, Senior Enforcement Counsel John De Vito and Litigation Director Emily Hoffman, under the supervision of DCWP’s Office of Labor Policy & Standards, which is led by Deputy Commissioner Elizabeth Wagoner.
The NYC Department of Consumer and Worker Protection (DCWP)—formerly the Department of Consumer Affairs (DCA)—protects and enhances the daily economic lives of New Yorkers to create thriving communities. DCWP licenses more than 45,000 businesses in more than 40 industries and enforces key consumer protection, licensing, and workplace laws that apply to countless more. By supporting businesses through equitable enforcement and access to resources and, by helping to resolve complaints, DCWP protects the marketplace from predatory practices and strives to create a culture of compliance. Through its community outreach and the work of its offices of Financial Empowerment and Labor Policy & Standards, DCWP empowers consumers and working families by providing the tools and resources they need to be educated consumers and to achieve financial health and work-life balance. DCWP also conducts research and advocates for public policy that furthers its work to support New York City’s communities. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp or on its social media sites, Twitter, Facebook, Instagram, and YouTube.
Media Contacts:
Michael Lanza / Stephany Vasquez Sanchez
Department of Consumer and Worker Protection
(212) 436-0042
press@dcwp.nyc.gov