Former Starbucks employees could receive a payment from a $325,000 class action settlement linked to allegations over notices about continued health insurance coverage. Eligible claimants have until December 2, 2026 to take the required steps.
Who could qualify for the Starbucks settlement?
The case concerns former Starbucks workers who participated in the company’s Welfare Benefits Plan, including its Health and Vision Plans.
To qualify, a former employee must also have received a COBRA notice between July 21, 2016 and January 1, 2023 and not elected continuation coverage.
The lawsuit alleged that Starbucks’ notices did not adequately explain workers’ rights to continue their employer-sponsored health coverage under COBRA.
Starbucks has not admitted wrongdoing and agreed to the settlement to resolve the allegations.
How much could former employees receive?
Eligible class members who submitted a valid claim could receive an estimated $30 to $74. The final amount depends on the number of valid claims.
According to the settlement information, a higher number of claims would result in a lower payment per person. If roughly 25% of eligible class members submit claims, the payment could be around $30. With a participation rate of about 10%, it could be closer to $74.
What is COBRA coverage?
COBRA is a federal law dating from 1985 that gives certain workers and their dependents the right to continue employer-sponsored group health insurance after losing employment or following certain qualifying events.
It generally involves continuing the same employer health plan rather than taking out a separate insurance policy. The coverage can apply to medical, dental and vision plans, subject to the relevant rules.
When is the Starbucks settlement deadline?
Former employees who qualify must take action by December 2, 2026. The same date is also the deadline for exclusions and objections relating to the settlement.
Potential class members should check the settlement notice they received for their specific instructions.
Claim forms were sent directly to potential class members
Unlike some other class actions, new claim forms cannot simply be completed through the settlement website. The settlement information states that claim forms were sent to prospective class members.
People who received a notice can use the notice ID and PIN supplied with their paperwork to update their address online if necessary. Those who believe they qualify but no longer have their paperwork should consult the official settlement information for guidance.
What happens next?
The $325,000 settlement remains tied to the court process governing the class action. Former Starbucks employees who received a qualifying notice should check their paperwork and the official settlement information before the December 2 deadline.
The case is separate from other consumer settlements currently accepting claims, each with its own eligibility rules and deadlines.
