Starbucks Takes Heat for Tip Sharing Policy

tipTipping is an activity so fervently argued and debated in the United States that entire books have been published on tipping etiquette. Those who have worked for tips argue for it, those that haven’t argue against it, and both sides tend to leave the debate unsettled and more angry than when they started. But, generally the way it works is this: you scribble down a few extra bucks on your credit card receipt, put some money on the table or, if at Starbucks, throw some cash in a jar. Often that money goes to more than just the one individual who you had face to face contact with. It’s commonly divided among all servers/bussers/valets/baristas/etc. Starbucks takes it a step further and divides tips between baristas and shift supervisors, hourly employees that often perform the duties of baristas but carry store keys and safe codes.

Well, according to California law, tips can’t be split between employees and managers. A California court has ruled that Starbucks shift supervisors are in fact “managers” according to state law. Because of this, Starbucks now faces a class-action case stemming from one disgruntled California employee who filed suit in 2004 for the barista/shift supervisor tip sharing. The preliminary trial found the company liable and the damages portion starts today, according to the San Diego Tribune. According to a lawyer involved in the case, the final damages could be in the eight figure range.

The blog Starbucks Gossip has a take on the story here. What’s particularly interesting are the reader’s comments, most of whom apparently work at Starbucks stores across the United States and Canada and tend to side with the shift supervisors on this issue.


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