Last year Starbucks took a lot of heat in the press for an $86 million ruling against them for taking tips from baristas and giving them to management. In reality the “managers” in question were shift supervisors doing essentially the same job as baristas and customers leaving tips reasonably expected them to get their share. I defended Starbucks at the time and I’m glad to see that a California appeals court has reached the same conclusion [full decision in .DOC format here):
Specifically, the undisputed facts show: (1) the vast majority of the time shift supervisors and baristas perform the same jobs; (2) these employees rotate jobs and work as a "team" throughout the day; (3) customers intend that their tips placed in the collective tip boxes collectively reward all of these service employees; and (4) Starbucks's manner of dividing the collective tip boxes among the service employees (based on the time worked by each employee) is fair and equitable. [...]
Because the trial court’s interpretation of section 351 was not supported by the statutory language and led to a result contrary to the fundamental purpose of the statutory scheme, it is one that the Legislature could not have intended. We reverse the judgment in its entirety.
Cue allegation from amazingly persistent commenter Gary that the appeals court must have been bribed by Starbucks in 3… 2…
[Via Starbucks Gossip.]