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Starbucks Ruling Tips The Scales: Changing California Law To Allow Supervisory Employees Their Fair Share Of The Tips, Andrew Lee Younkins

Andrew L Younkins

In 2008, a San Diego trial court slapped Starbucks Corporation with a $100 million judgment for violation of California's tip-sharing laws. Shift supervisors, classified as “agents” of the employer by statute, could not share in tip jar proceeds, despite spending 95% of their time performing the same duties as ordinary Starbucks baristas. More recently, the Court of Appeal reversed the judgment, reasoning that tips placed in a tip jar are not personally given to or intended for baristas, and so are outside of the statute's reach. While strong evidence suggests Starbucks supervisors should be allowed a share of the tips, …