Judge says Starbucks has to pay $86 million (plus interest) in tips pooling case

A California judge ruled on Thursday that Starbucks has to pay $86 million plus interest in restitution to an estimated 120,000 baristas because it illegally allowed shift supervisors to share in tip pools. The award will soar to nearly $106 million when interest is calculated. (San Diego Union-Tribune | Seattle Times |  Seattle Post-Intelligencer)

> "Starbucks got caught with its hand in the tip jar"  

> "If I were a shareholder, I'd tell Starbucks to make this problem go away"

Comments

[DT]

Shifts in California...get ready to organize! Don't let yourselves get shafted by not getting a raise. And don't settle for a "token" raise either. Make sure that the raise you get is roughly equal to your tips. In fact I'd start compiling by district or store or whatever the average amount of tips per week and document it so you can take it to corporate with some evidence to say "this is the size raise we deserve in this district/store" instead of just settling for a blanket "50 cent" raise or whatever they'll offer.

[BOSTON STARBUCKS REBEL]

I believe the judge's ruling is fair and just.
If a store uses proper deployment, the shift supervisor is the "floater." They are not to assign a register and not to be on bar. The shift supervisor's primary responsibility is being the cash controller. That means they monitor the funds in the store. They direct the baristas to the tasks that they must perform. The shift supervisors go and fix bottlenecks that might be occuring. The shift supervisors if using proper deployment do not perform the same tasks as baristas do.

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
AIM SN: BOSTONSTARREBEL

[Vicki Verona]

BSR, the scenario you are referring to is during peak. In many stores, 2 people open the store and may not have someone come in until an hour after the store opens.

Theres more to the job than making drinks and taking money. Floaters often stock pastries, make prep, do dishes, get breakfast sandwiches, etc, etc.

[Vicki Verona]

One of my concerns is in regards to have multiple shift supervisors on the floor. If I just happen to schedule my busy Saturday morning with 2 shift supervisors, does that mean only one of them is eligible for tips since one will just be "performing manager tasks" while the other is working the bar?

I think this lawsuit is ridiculous. I know many shift supervisors are going to be upset in a very important sector of Starbucks North America

I don't think Starbucks should be blamed for this. If the law really doesn't let shifts get tips, the law is wrong. We're not managers and we're just getting tips that WE EARN. Why should some lame barista who just started get the money that my customers are leaving because htey know me from the past two years and they like my drinks? If that's really what the law says, the damn law should be changed.

I am so pissed right now at the baristas and there greedy lawsyers who brought this stupid lawsuit. Anybody who actually works in a store knows shifts deserve tips. We do the same damn things as baristas.

I'm so sick of lawyers looking for technicalities and not what's right. How many shifts are going to be screwed by this?

[Vicki Verona]

Wow. Expect this to be the "water cooler" or in my store, "french press" talk of the day, tomorrow.

Expect your DMs and partner resources people to be communicating with you very soon. Another article I read states that effective immediately, shifts can not share in the tip pool.

Once again, judicial wisdom (not) from the land of fruits and nuts!

DT. . .

Organize? Take your ideas elsewhere. Organizing against Starbucks is the dumbest answer to this issue. You'd be organizing against the organization that is being sued for giving YOU tips. Why don't you "organize" against those who began the lawsuit? Get over yourself and stop trying to screw up the company that has been great to me for many years.

[snagger]

Does this mean that if the baristas who share in these proceeds haven't been declaring their tips to the IRS; they will be admitting to years of income tax evasion?

Another question for you "DT". . . do you report your tips in excess of 50 cents an hour like you're supposed to?

Another thing to consider. . . if you "organize" the shifts, stores would be split in at least THREE different sides . . baristas, shifts, then store managers/ASM. Think about it, and think about what you are saying.

Instead of posting about "organizing" maybe you should write letters to the dumbass who began the suit in the first place.

Most shifts at stores around me are developing skills to become an ASM. They rotate through doing different tasks and then once they know how to do them, they are considered for promotion.

I just searched for the notice that went out from the attorneys. It here: http://www.gdblegal.com/pdf/starbucknotice.pdf (sorry, but I don't know how to link). There something I don't understand. It quotes the law as "No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the
employee or employees to whom it was aid, given, or left for." How does that stop shifts from sharing tips? Did the judge say that tips are only being left for baristas? That's crazy.

[snagger]

The court found a tip rate of $1.71 per hour, California baristas accepting these proceeds may owe a bunch to the State and IRS.

[atownsbuxrules]

This is some serious BS. If you're working the floor you should share in tips. There are times my SM is working a register during peak and pulling in those tips by being legendary... I'd say for every hour you work on the floor you should split tips no matter who you are.
Shifts work register and DT sometimes, BSR, but I wish I lived in the ideal world you do where that doesn't happen! And when we are on the floor making drinks or engaging in conversations I think we deserve a piece of the pie as much as any barista.

We are partners, the name itself represents equality in the most basic sense. These rules should be re-evaluated.

[lux]

I reported all my tips when I was a barista, but I'm pretty sure I was one of the few who did.

This lawsuit sucks, by the way. Shifts deserve their fair share of the tips IMHO.

[Gooooogirl]

How encouraging to work hard to be promoted in a company that you love and become a shift supervisor- just to have some loser underlings bring legal action against you for wanting to be tipped for working 10 times harder and 3 hours more a day. Pathetic!

Anon - the company was good to me for 8 years too. 4 of them as a SS, and 2 as an ASM/SM. So I know very well WTF I'm talking about. And I'm simply advising all the SS's in California to accept some "50 cents an hour" raise if they're going to lose out on say $1 an hour in tips.

They ought to get a pay raise that is commensurate with the tips they are losing, that's what I'm saying.

And if you're going to attack me, have the guts to give yourself some type of name.

[DT]

whoops - that last post was by me, DT.

And it should have said "not to accept some 50 cent an hour raise when they're losing more than that in tips"

[Jmistake]

the law was (and is) ambiguous...
this judge interpreted it to mean one thing...and you could find another judge that would rule differently.
i disagree with the ruling. should "shifts" get paid more. of course but while i agree with the "ends" (better wages)i don't agree with the "means" (ie. this lawsuit).
one observation: you know going into your position how much you will make and can make in the future (raises etc...) so this lawsuit does nothing more than cost starbucks a pile of cash to be payed to people who were more than willing to cash their checks every other week knowing what their "wage" was. if you don't like your job or think you are underpaid than quit. or get promoted. or find another job that will pay you what you think you deserve. the sense of entitlement that people feel regarding this topic is mind-blowing...

[Sheik]

. . . and Starbucks has been PWNED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[10065Barista]

The main thing I am reading here is how stupid the law is. What I don't think anyone is considering is that if it is the law in CA that supervisors cannot share in tips, then the lawyers at Starbucks should have adjusted their guidelines for stores in CA for this law, and adjusted their market pay accordingly.

Just like if it is illegal to not pay store managers in CA for overtime. All states do not require overtime compensation for managers, however CA does, and Starbucks adjusted their rules accordingly.

[DT]

wow BSR - what's happened to you? You didn't use to seem so...angry. In fact I would have pegged you to be upset about this, not happy.

I think you've fallen victim to your own "celebrity" on this board and turned into a caricature of yourself.

[Jmistake]

is anyone else seriously offended by the sense of entitlement people have on here? you are lucky you even get "tips" and you are also very fortunate that starbucks has been making it possible for you to NOT claim those tips on your tax forms.

i'm waiting for the appeal...

[Pissed off shift]

This is BS. If shifts don't get tips, nobody should. Like one of the anons said, it's not fair that shifts do the work and baristas get all the money. I'd rather they get rid of tip jars completely. Then everyone would get treated the same.

[smokey]

of course shifts are part of management. they tell you when to take a break, take a lunch, assign a till, close a till, where to deploy, do a spin , take out trash, make samples, drink and/or food, make sure to sign safety log, check temps. in fridges, make schedule changes, like switching with diferent partners. they go to management meetings, during the 3 hour store learning meeting, they were part of a leader in groups.etc.etc.etc. this is not a question as to whether they deserve tips, of course they do alot of work,that's why they got a raise, a promotion, this is the state law, starbucks pay them more and let's move on, get over it.

[snagger]

This is a big time loss for SBUX and a gain for some wealthy SF attorneys as well as the taxman.Baristas will see very few dollars.

[weinusdemylo]

I suggest this to all of the baristas who recognize that this ruling is crap:
"organize" yourselves and donate your gain to a worthy charity.

Starbucks is at fault here, not this "dumb" CA law. Starbucks should have adjusted their own policies in order to better compensate the shifts without breaking the law.

However, I do sympathize with CA shifts who are going to lose vital income.

[baristaNE]

we are all a team when we are behind the counter...everyone works together towards the ultimate goal of providing the Starbucks experience to every customer...

Boston Starbucks Rebel....i know that you are extremely passionate about what you do, but how can you say that shift supervisors shouldn't be entitled to a share of a store's tips?

As a shift supervisor who goes back to being a barista during the school year, i could not imagine being denied my share of the tips for a week.

[two a day joe]

Sb should get rid of the tip jar. You're not bartenders who get paid a $1.50 an hour without benefits. The only reason it exists is because "your partners" in corporate can get by with paying you less.

Make the smart move, organize & unionize. Get your wages up and you won't have to worry about who gets what in tips. It will also improve "the customer experience" by not guilting them into tipping for something that should not have a gratuity associated with it.

[Pat Nerr]

Good lord... will there be any letting up on this company? And where are all of the posters that say "Hey... It's just business..." ? Point being that these sorts of things happen to companies that treat their business and employees as "just business, not personal"...

Shame on the BUX for not reacting sooner with policy knowing that the law is written as it is... What a pain, but necessary to send the message for Starbucks to "transform" the employee experience across the board.

What should Starbucks have done? I read that law and don't see how it says that shifts can't get tips they help earn. Doesn't it say that tips are the "sole property" of the people they were given to? If Starbucks stopped shifts from getting tips before the court ruled, I think shifts would have sued claiming those tips are their property, not the baristas.

[newcastle]

To the anonymous poster thinking all baristas are newbies, WRONG! Some people, like myself, choose not to be a shift supervisor (I've been w/ sbux for 6 years). Don't start commenting like you're the sh*t because you're a shift and think you're better than a barista.

My feeling on this decision of the lawsuit is neutral. I know many shifts work hard and do the same tasks as baristas, but there also lots of time spent performing "off the floor" work (i.e. banking, till drops, orders, etc). So shifts essentially perform the same duties as an ASM might but receive tips. Shifts should still be compensated, but it should be by sbux because everyone already knows sbux offers very uncompetetive wages.

[sbuxsteve]

Greedy...greedy...greedy. Why do people always get so greedy? We get so much from our company. Unions suck...If greedy people are not careful stuff gets taken away. Can you imagine a Starbucks world w/o the tip jars, the benefits for 20 hours plus, the stock options, no markouts. So unhappy at work, just freakin quit and go somewhere else.

[Bill]

California law says that the empoyer must pay the shifts, rather than letting the custimers and baristas pay.

Since Starbucks chooses to do business there, they need to comply.

Liking a law and obeying a law are two different things. No one says they have to like it.

SBUXSTEVE,

It's little over-the-top to say that "unions suck." They may not have a place at Starbucks but that does not mean that they "suck." That's an insult to the many happy union members in this country.

Here's something odd...I'm a shift NOW but was a barista when this action was filed so I'm a member of the class action! That means if this ruling stands ( which I personally do not believe it will on appeal...) I will simultaneously loose my tips but get a pay-out from this $ 106 million...
I'm pissed MORE that neither Starbucks NOR the firm leading the suit have kept me in the loop on this. How do I get MY say in any of this???
If I'm not going to get tips, I want in on my SMs bonus and I want a raise!
PS: I do not believe that shifts are 'agents'.

[Vancouver Ex-barista]

NO MORE UNION TALK PLEASE!!!
NO-ONE will EVER change their minds from what they believe about Unions. It's like religion, or possibly genetic (LOL!), It's just not possible for the opposite sides to have a rational discussion!

The point about having more than one shift on the floor working as baristas because they are not the shift that day or that time is a great one... they are working as a barista... doing everything everyone else does. And when I'm floating, I do hop on bar occasionally when we're understaffed - which often happens - and I need to relieve somebody for a break. There are a lot of people in our store who cannot do bar for various reasons and I need to hop on. Also, when I'm floating, I don't just stand there - I expedite the line, get food, coffee, brew coffee... basically do everything baristas do PLUS count in and out of the safe, make change, and drop tills.

And guess what? I just got home from work and I worked a barista shift tonight, closing bar. I deserve tips, and thank goodness that I don't live in CA. Shifts can be called 'management' by the state - fine - but they aren't paid to be management.

I make 50 cents more than several of our baristas - hardly enough to say 'oh well shifts get paid more so they shouldn't get tips too.' It's not like we're making 35+ thousand dollars a year as ASMs and SMs are (in my area anyway.)

If shifts can't have tips, then baristas shouldn't have them either and the tip jar should be gotten rid of all together. Shifts do more work than baristas, are basically paid the same, yet don't get tips? Something really wrong with that.

[SSinRoseville]

I feel that this ruling on the case is far from just. I think that as a Supervisor, were part of the management "TEAM" but we are by no means a manager. As a co-worker, friend, and ASM put, ss are just baristas with keys. We have more responsibility, yes, but do not do more then hold baristas responsible for Time and Attendance, make sure that the store is in excellent operating conditions, leading by example and showing legendary CS to everyone. I think this was started by a pissed off guy, who wasn't happy that his SSs were able to work 4 hrs while he had to work 8 and they got part of the tip distribution. Chou, I believe his name, may think that he did a great service to all the baristas out their, but he probably hurt this company more then he imagines. Unless Sbux goes and attempts to appeal, everyone is going to be stuck with the result of this case.

/end rant

^ What store in Roseville do you work in? I know people up there.

[3L Barista]

@Anon at 9:24:16 PM,

It sounds like the lawyers that sued Starbucks had a conflict of interest. Maybe you could sue them for malpractice. I'm only in law school, so I can't take your case.

P.S. I'm not saying DAMN IT I DESERVE TIPS before people jump all over me for being an "entitled barista..." I'm just saying, if baristas are receiving them, I should as well. I like my tips but if they were gotten rid of that would be ok with me as well.

I'm so glad I don't live in CA.

PP.S. I'm the poster from above.

If a shift supervisor has no managerial duties or authority then why are they called shift supervisor's?

They have authority but are only in charge while running their shift, and do not have access to management files and areas on the computer that higher management has... the authority they have deals with deployment, breaks, and cash.

In addition, they are hourly, not salary, as management is in sbux land.

[IVL]

I agree with previous posters...if Shift Supervisors don't get tips get rid of the tip jars! SS don't get paid a ton more than baristas but the work 3 times as hard!

[nmailand]

I am a SS at a very small sbux. 90% of the time we only have three people working our store. One on the front and two at the dt. I do the same things as the baristas. I make drinks, brew coffee, run registers, give breaks, handle money and so forth. I make $8.10 an hour. I barely get 30 hours a week. So- if this is so much money that I can't have tips... no one deserves them. It's just stupid. I can't believe some unhappy barista did this! We aren't the enemy. I worked my way up the ladder...I didn't expect to make less by doing so!

[SBUX Hater]

Wouldn't it be great if barista's in every state started class action suits all across the land - which led to the collapse of the misery that is Starbucks!

With this ruling look forward to incredibly cheap stock prices. I'd think of buying the Bux for under 10 bucks a share.

Of course so would every other investment company. Starbucks being hostilely taken over would be a sight to behold.