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March 12th, 2008

Starbucks Tip Jars Lead to Barista Class Action

As discussed in this article in the San Diego Union-Tribune, Starbucks’ supervisors sharing tips left by customers in tip jars is at the heart of a class action lawsuit that is now headed to the damages phase. The class action brought nearly four years ago alleges that the company’s policy of sharing tips between baristas and shift supervisors violates state labor laws which prohibit such sharing.

Starbucks argued at trial that the shift supervisors were not managers, and performed many of the same tasks as baristas. On Feb. 28, the court found Starbucks liable, ruling that shift supervisors “both supervise and direct the acts of the baristas” at the 1,400 California stores the company operates.

The damages portion of the Starbucks trial begins today. Terry Chapko, a lawyer for the baristas, said the final amount could be in the “tens of millions” of dollars for the 120,000 people who have worked as baristas at Starbucks in California since October 2000.

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