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Starbucks has agreed to pay about $35 million to more than 15,000 New York City workers after the city found the company failed to give employees steady schedules and often cut their hours without warning.

City officials announced the settlement Monday, calling it the largest worker-protection agreement in New York's history.

Under the deal, Starbucks will also pay $3.4 million in civil penalties and must follow the city's Fair Workweek law, which requires fast-food employers to give workers regular schedules and chances to pick up extra shifts.

According to the BBC, most hourly employees will receive $50 for every week worked from July 2021 through July 2024, and workers who faced violations after that period may file a complaint to receive compensation.

The settlement follows a city investigation that began in 2022 after dozens of Starbucks employees reported sudden schedule changes and major cuts to their weekly hours.

Officials said the probe expanded to every Starbucks location in New York City and revealed a "pattern of systemic violations."

Investigators found that many workers never received predictable schedules and often lost more than 15% of their hours, making it hard for them to plan for child care, school, or second jobs.

The city also said Starbucks regularly denied employees the chance to take on additional shifts, keeping many stuck in part-time roles they did not want.

Starbucks to Rehire Laid-Off Baristas

As a result of the settlement, baristas laid off during recent store closures in the city will now be eligible for reinstatement at other Starbucks locations.

Starbucks said it is committed to following all local laws and noted that New York City's scheduling rules are complex.

A company spokeswoman explained that the law is "notoriously challenging to manage," adding that Starbucks supports the intent of the policy and aims to stay in compliance moving forward, NY Post reported.

New York City leaders praised the settlement. Officials said all workers deserve reliable hours and fairness on the job, and they hope the agreement reminds large companies to follow worker-protection laws.

Workers say unpredictable schedules make it difficult to provide good service and keep up with rising living costs.

The strike has spread to more than 100 stores as employees demand a contract that ensures stable hours.