More than 1,600 workers at Walgreens, Kinship Coffee, Allstar Security & Consulting and Calzedonia/Intimissimi will receive more than $2.3 million in compensation and fines following settlements reached with the City of New York for violations of labor protection laws.
Mayor Zohran Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine announced that companies will pay more than $2.1 million in employee restitution and more than $218,000 in penalties and administrative costs.
“These laws exist because working families deserve job stability. If companies decide to violate them, they will have to answer for it,” said Mamdani.
Walgreens
The largest settlement goes to Walgreens, which will pay $1.8 million, including $1.64 million for 579 workers at three stores located at 1847 Rockaway Parkway, 755 Broadway and 3000 Church Avenue in Brooklyn.
The DCWP determined that the company violated the Fair Workweek Law by canceling or reducing shifts with less than 72 hours’ notice, requiring additional hours without the required consent, and failing to post schedules well in advance between June 2018 and November 2025.
In addition to pay, Walgreens will have to implement compliance policies, train supervisors, conduct internal audits and post notice about employees’ right to a predictable work schedule in all of its city stores.
Kinship Coffee
Kinship Coffee will pay $76,500, of which $67,500 will go to more than 90 workers at its three Astoria locations.
The city concluded that the company failed to provide paid sick and safe leave to eligible employees, lacked a written policy on this benefit, failed to inform workers of their rights, and failed to provide records of accrued and used leave time.
The company agreed to pay compensation within 165 days and adopt new internal policies, train its managers and allow DCWP inspections to verify compliance with the law.
Other companies
Allstar Security & Consulting will pay more than 900 workers $270,000, plus $30,000 in fines and costs, for violating the Protected Time Off Act.
For its part, Calzedonia, owner of Intimissimi, will pay more than $154,000 to more than 50 employees, in addition to more than $15,000 in penalties. According to the city, the company violated the Fair Work Hours Act by failing to provide schedules 72 hours in advance, modifying shifts without the required consent, and canceling days without proper notice.
Neither company immediately responded to requests for comment.
Levine noted that the city’s labor laws seek to prevent last-minute schedule changes and protect workers’ right to paid leave.
The Fair Work Hours Act requires retailers to provide schedules at least 72 hours in advance and prohibits canceling shifts with less than three days’ notice.
The Protected Time Off Law guarantees covered workers between 40 and 56 hours of paid sick or safe leave annually, in addition to other protected leave established by municipal legislation.
