Court rules in favor of Starbucks managers who filed overtime lawsuit

A federal court is allowing two Starbucks managers to invite others to join their lawsuit that contends the coffee chain denied them overtime in violation of federal law. The managers say they're paid salaries that are higher than what most hourly wage clerks earn, but estimate that less than 10 percent of their time is spent on managerial tasks -- and that, they contend, doesn't make them exempt from overtime pay. (Associated Press)

Comments

[CoffeeBoy]

Give me a break! Managers at SBUX are required to work a lot less than most restaurant or retail companies, (most require 45-55). This is a case of lazy managers looking for an easy payday.

With the stock options and stock purachse plans available, they (SBUX managers) are WELL compensated. Hell, under their last stock purchase plan, their stock gain was over 40% on the first day.

Besides... why are they working over 40 hours anyway? Sounds like they cannot manager their time? Store Managers in California are only allowed to work 40 hours per week because of OT laws their state; and they seem to get their work done in 40 hours...

You want to give someone a raise or OT, give it to teachers or military folks.

[Shell]

I agree..sounds like someone has some time management issues or is trying too run the business all by themselves and not empowering the partners. I've worked with this company as a storemanager for 5 years, I work 40hrs a week, give and take..beats the hell out of full service food. If i recieve a letter..it's gonna act as a filter for my brewers.

[Cunning Stunt]

The court ruled on a point of discovery. It said "Yes, they can tell other managers about the suit, since it's common practice in past hearings and both sides could benefit from consolidating the interest of other parties making claims."

It did not rule in favor of anyone. Your headline is disingenious.

it won't go in the manager's favor. if it does the entire salary system of pay will have to be rewritten in the US

[dalingshow]

just out of curiosity...how much to Starbucks store managers typically make? (I assume salaries are adjusted to geographic cost of living...so what are some major-market examples?)

people should get overtime pay...but this would turn a lot of the food service industry on its head (for a while at least).

no people that are salaried should not get overtime. that is what salaried is all about.

as for pay Starbucks is right in there for pay for restaurant managers of a similar establishment. however you need to add the benefits package into it which is better than most and then consider that many starbucks managers have no other foodservice experience managing it's pretty nice.

having worked in a lot of different food service companies Starbucks is by far and away the best and easiest to work for. The hours are much shorter, much more relaxed etc....

These managers are just naive little kids trying to get more money the easy way.

[Shell]

Last year as a sbux manager I made, 54,000 that's including my bonus. I've been with the company 5 years. Not too shabby for someone who basically works 40 hours a week, give and take.

[CoffeeBoy]

Shell -
And I am sure that is not counting your Stock Options or Stock Investment plan or 401 match. Then at 5 years, that is what 4 weeks vacation? Pretty damn nice!

Yeah - SBucks managers deserve OT... NOT !

Keep your OT, give me the Stock Options and SHOW ME THE MONEY :-)

[shell]

coffeeboy, you're right..that's not including all the great perks. OT!! WTF!! I bought my house with my stocks, i've bailed myself out of debt with my 401, I've got 4 weeks of vacation, whew, whew...can someone tell me i need OT, if i can't manage my time, then i need too find another profession..see ya all in seattle!!

[billo]

Most SB managers earn less than $36,000 per year, salary. In markets where labor is tight, there aren't enought partners to run all the shifts ... so the manager must. Labor targets are such that bonuses are not paid unless a manager does work shifts.

thats part of being a manager in the food service industry.

labor is just a small part of how someone bonuses in SBUX. Labor problems can all be traced back to the manager of store

[StarbucksManagerPA]

I've worked for Starbucks as a general manager for three years now. I agree with the lawsuit. It is not just a question of how many hours a week you work, and let's be honest it's more than 40. And if you're not working over 40, you're store probably isn't running all that well (and there are quite a few underachievers out there) . . . but also what you're doing in that time and when you're working overtime. Most of my time is spent on the floor (as required by Starbucks, who now, only after getting sued, gives you a questionable 7 hour "admin day" each week) and anytime I'm working overtime (past forty hours) it's because I'm performing barista level tasks, because someone didn't show up, got sick, or it's just too busy to leave because our stores are always just running the bare minimum labor needed to get the job done. And as far as pay goes, most managers are lucky to see $35,000 in this area, internal promotions are always screwed over, including one manager I know who was offered $32,000 to be a general manager. GIVE ME A BREAK!!! You go find a full service resturaunt manager making that little. And the benefits are OK, it's not the second coming of Christ in our benefits package! Starbucks is not the only place that offers 401k and health insurance or even stock options for that matter. Overall, Starbucks is not a horrible place to work but they do screw over there managers with pay any chance they can get, from what they offer as a base salary, to changing bonus plans, etc.

[crowman]

Hey,
I'm up here north of the 49th (Toronto, ON, Canada) and have been wondering (realize laws et al are different, but it's still *buks) what they're like to work for? Been reading your posts, most seem favorable, but...
I've been in the restaurant biz for 14+yrs (dish to mngmt) looking for a change ,good pay and something with more than just gvmnt pension. One post by "Shell" says 45-55hrs/wk at a restaurant, that's only if the place isn't 7 days (have done 60+hr wks, good pay[sal+ OT+ bonus+ lew-time, 1/2 day off for every 10hrs OT]) but I'm looking for "steady" work, know some people who work the counter at *buks and they say good place, but some mngrs shouldn't be.
Any thoughts, suggestions?
Thanks!

[Jay Boy]

I have been with SBUX for six years and I have stayed a shifty partly because of this issue. I have worked for about a dozen managers all told and they all end up working 50 or even 60 hrs/wk - not because they are bad at managing their time but because thats what the company expects. Only 7 hrs can be scheduled as an off the floor "admin day" and that is almost never spent off the floor. They make drinks, ring the register, take out trash, and mop the floor just like everyone else. They often make less per hour than the higher paid shift supervisors. Not to mention, I get $2/hour in tips and they get squat. I'm sticking to my post.

[Jay Boy]

Don't think OT would create any millionaire managers either btw. SBUX would simply do what they obviously do in CA: hire more workers, learn to prioritize a managers time, and make sure as hell that they dont go over 40 hrs, just like with hourly workers. Our "overtime" provision just means that if an employee works 40.01hrs the manager gets it from the top.

[Tyler]

I am about to graduate college w/ my BA and am moving to the Seattle area. I am considering a job in the head office or managing a store. Tips on starting pay, advice, etc? Please email me or respond. Thanks!

[Susie Q]

I think maybe the managers that receive that letter should contact the attorneys and let them know that they will be testifying FOR Starbucks. I don't work for the company but I could stand to make 54000/yr, stockoptions, 401K, free coffee and all the other fantastic benefits the company orders just by, according to the managers suing, making coffee. Starbucks is a fantastic company and maybe once the managers lose their case they can always go work for some fast food company that requires you to work 60+ hours for less money.

is this an anti manager website or what? all i hear is pick pick pick on what we - managers - do.

54,000 a year is about as common as winning the lottery. we can't call in sick. taking all our vacation time isn't always an option because we have to tend to the business first. I LOVE WHAT I DO but HATE IGNORANT PEOPLE WHO DON"T UNDERSTAND. come work a week in my shoes. deal with great baristas having bad days or getting sick. deliveries that don't show up so you have to drive around town finding product. customers that could care less about you even when you ask them "how are you" . cramped work space being on your feet. the list could go on and on. the point is this is a managers private decision to join this lawsuit. the people who have posted on here that think we deserve what we get . . . look past what you see on the surface and really pay atttention when you stop by a store. also . . . most managers of actual restaurants keep a set schedule and aren't out there serving each table.
shame on all of you for being so blind.

I have to say the biz isn't all that is being made of it here. Internal promotions make squat compared to what they are willing to pay for an outside hire. I worked for corporate for 5 years, and trained new hire managers that were making 10k more a year than me. Licensed stores are where its at. They pay dearly for the knowledge that Starbucks gives out. I never saw 56K with corporate, but I do now. Step away from the light...

I am in Alberta, Canada and was inquiring about a position Starbucks calls "District Manager-Licensed Stores".....was hoping that someone out there could give me some feedback on this position as to what it entails and what the salary might be? I see that there are many postings of this exact positon across North America....is this a brand new position that Starbucks is implementing into the company?
thanks for your imput......

[sean heretic]

i make around $11,000, no benefits, paid hoidays, or any compensation except the cafeteria ladies feed me for free ever so often. i had to become an expert in hostage negociation, bomb disposal, fire arms, martial arts, and domestic terrorism.....i am a substitute teacher....mr. star bucks mgr. i will gladly trade jobs with you...you get two months unpaid vacation every year...your mouth watering now....get on your knees and pray to any diety that will listen and thank them for your hell job....and to top it off i can't make enough money to pay my student loans...to get the required 4 year college b.a.....ooooo what a dungeon you work in.....how about a room full between 30 (to 40 regular) and 80 to 100 (music classes) adolesents raging hormones..popping sugar candy like winos do boones farm....whine some more....

[uponatime]

Wow. This isn't about comparing Starbucks managers to other managers in the food service industry. On par, a Sbux manager makes FAR less than a restaraunt manager anyway. This is about fair and just compensation. I don't think anyone will disagree that a good benefits package should be provided by EVERY employer to their employees, but this doesn't let them off the hook for overworking and underpaying their salaried staff. I would really like to meet the manager that can consistantly accomplish ALL of their management duties on 5 non coverage hours a week, and maintain a primary duty of floor staff, because that's what being a Sbux manager is all about. For those that say this will never fly? Look to California for the precidence, and ask yourself why Starbucks settled that class action so easily.

SBUX managers make more per hour worked than any other restaurant manager I've met with the exception of very high end restaurants.

[coastalbird]

I am concerned about the negative and attacking voice of some of these posts. Why does anyone care that workers fought for pay for the work they were doing? A court heard the case and ruled in favor of the employees. This is inline with the popular thought: Receive pay for work. Simple, unless you run a sweatshop.
I unexpectedly received money from this lawsuit for the months I worked as an assistant manager in San Francisco. I was used to working conditions in the NW and was surprised that San Francisco stores had much higher turn over rates and difficult conditions, I found myself working 50 hours plus, which was expected. Comparing the wages and benefits of other jobs to those that Starbucks offers and then saying that managers at Starbucks should not be paid for hours worked, is flawed and not in line with US labor laws (ie against the law). The relative thinking of "well this job is better than some I could have" is exactly what prevents employees from coming forward and demanding pay for hours worked, especially overtime.

[Dan]

What some people fail to realize is that Assistant Managers already sued and won a similar lawsuit. They are salaried and they now punch the timeclock. If they work more than 40 hours they are paid overtime. In addition, Store Managers in some regions also punch the timeclock and get paid for overtime while Store Managers in other regions do not. The law requires that salaried employees spend a certain amount of time performing managerial function and supervising a certain number of people. If Store Managers at Starbucks are spending most of their time on the floor making drinks and working the register with one or two other employees they should not be exempt from overtime under the law.

What Are Examples of Managerial Duties?

In order to meet the executive exemption, the employee’s duties must clearly be related to managerial work: interviewing and selecting employees, directing work, handling employee complaints, planning work, setting work schedules and pay rates, disciplining employees, deciding on types of merchandise.

The Division of Labor Standards Enforcement defines the phrase “customarily and regularly exercises discretion and independent judgment” to mean the comparison and evaluation of possible courses of conduct and acting or making a decision after the various possibilities have been considered. The employee must have the power or authority to make an independent choice, free from immediate direction or supervision and with respect to matters of significance. An employee who merely applies his or her memory in following prescribed procedures or determining which required procedure out of the company manual to follow, is not exercising discretion and independent judgment.

Employees who spend more than fifty percent of their time engaged in clerical duties, bookkeeping, cashiering, filing, sales, replenishing stock, or maintenance work are generally non-exempt. For instance, in the settlement involving Radio Shack managers claimed they spent most of their time making sales and performing tasks like vacuuming the store and cleaning the bathrooms. Starbucks “managers” and “assistant managers” claimed they spent more than half their time ringing sales, cleaning out cappuccino machines, mopping and other chores. Longs Drugs “managers” claimed to have spent more than half their time ringing sales and stocking shelves.

Even employees who are solely in charge of an establishment during certain work hours may not be exempt if they do not meet the test. For instance, a service station manager who spends the majority of time ringing up sales, cleaning, keeping records, pumping gas, and stocking will not be exempt. Assistant managers are often non-exempt because they do not exercise discretionary judgment, are in training, and do not supervise employees.

$54,000 is on the high end for a store manager...but not entirely un-heard of. Most managers start out between 32,000 and 36,000 yearly. They can, of course, bonus on top of this. Raises are based on anual performance reviews and can bring a manager to the 40,000 mark in the first 5 years. A lot of managers don't last 5 years. They are either recruited into other companies/industries, fired, promoted or just plain quit. When I was a store manager in Oregon, I wasn't eligable for overtime. I was always able to get all my work done in between 40-45 hours a week. If I went over 40, well...thats part of being manager.
Now I work in California and I am surrounded by managers who milk the overtime system. They don't seem to care that they are screwing the company, their employees, and themselves. Its sad really.

[John]

Can anyone please clarify what a "Zone Quality Assurance Specialist" does, and what the typical salary range is?

why not read the job description in the posting?
:)

I am a graduate of Western Culinary Institute in Portland with a degree in Hospitality Management and I'm looking at a starting salary of less than 32k in a restaurant. Starbuck's managers make more than I do and work less. It sounds like a case of greed for some of you. 54k, full benefits ya ya ya, pretty sweet deal for managing a coffee shop. Maybe I'm in the wrong field.
Starting out between 32k-36k for a coffee house manager sounds pretty good to me.

What I've learned today: I've learned that it's okay if a corporation breaks the law if they're really nice and pay more than other companies.

[toucan]

worked for starbucks for 4 years...manager for 3 can count on my fingers how many times I have worked 40h...for no extra cash..and I have to beg my district manager to be able to go home (abroad)for xmas...Mix great people with a corporation,you get starbucks.Working your butt off but you still love it and you come back every morning smiling...

[Lucky McBucky]

Alright everyone, this is getting out of hand. I have been a SM (what is a general manager @ SBUX?) for 4 years, I am well compensated for my time (57K last year and more to come in Options and 401K match)my family is well covered in Health care, I LOVE WHAT I DO and my Partners, customers are happy and passionate about our company.

Lawsuits are necessary for most disagreements and very helpful in interpreting the law. If this suit goes in favor of the Partners that are concerned, so be it, if not then what?

The working conditions in the store are the SOLE responsibility of the Managers and they own the result. If the conditions do not meet your expectations, look at yourself first!! If you lose your suit, I am developing some great leaders to take the place of those who believe the grass is greener on the other McSide of the McFence. The beauty is that there was an opportunity when you got here to grow with a dynamic and exploding company, somehow I do think you see the opportunity staring you right in the face.

Remember to close the door and turn off the lights when you leave.....

[Store manager]

I am an external manager who was hired with the company nearly a year ago. I am sadden to say that the management structure of this company, Starbucks, is the worse I've ever worked in before. You are not a store manager in this company because you are not allowed the time to manage anything. We are just any and all the time Baristas for Starbucks. Overtime, YES! We have families that we need to spend time with also. This company really needs to pay attention to its management structure. So to all of you store managers who think that $57,000 is a lot of money, its not. People should be paid for their time. Time worked = time paid. Haven't you heard that before? Without a change in the definition of what a manager is to Starbucks, they're turnover is going to consistently grow. This company is far to large and to rich to not have any structure. And Please tell me, What is the role of a District manager at Starbucks? These people are completely lost. I thought I wanted to retire with Starbucks but the poor operational make up of this company scares me. Lets get back to the drawing board here. We have the coffee business wrapped up but everything else about Starbucks structural is old news. Somebody HELP!!!

If you like to hide out in a back office all day, SM is not for you. If you need an upper corporate hierarchy full of hand-holding, butt-wiping nannies, SM is not for you. There are many ways you can define yourself in a position of leadership, and if you choose a negative route... then SM isn't for you.

[kschlenker]

Damn, some people just don't know jack. My husband was working 80-90 hours per week; but then again, he was one of the top managers in the nation when he was with Starbucks.
Their payscale limits aren't even as high as McDonald's or Jack in the Box.
Sucks to be a Starbucks manager, it really does.

Being a SM for over 10yrs and now taking the last straw. SM do not make that much money. Internal promotes are screwed severely in pay. I come from the SF market, being the highest paying mgmt for the company and am leaving the company at only 46,800. Ever try living in the SF Bay Area making under $50K? We are not treated like mgrs monitor operations were over paid baristas thats job is fulltime baby sitting. OT hell yes. The only reason why CA mgrs get anything done is the threat of using OT so you juggle customers, employees and incompetant DMs. As far as what they do , that being a DM...after 10 yrs I still have no clue. They seem to wander around and whine. If anyone is over paid its the DM's and upper mgmt while everyone else shoves 10k customers through their stores a week. Can I say enough is enough. yes. The company gets a lot of things but structure of mgmt they dont.

Somebody who has been an SM for 10 years in a company that has seen such growth and opportunity for advancement is not the way you should say you are underpaid. That is pretty embarrassing if you ask me. You have not achieved much. You are just annoyed because everyone around you has been promoted past you. Maybe you should try a bit harder at work and quit complaining.

[Houston Native]

I worked for Starbucks as a Store Manager, MCM(store manager trainer for those that don't know what an MCM does), and Community involvement/ Green Team Leader for 6 years. I can tell you after having run some of the company's largest most successful stores, that a 40-50 hour work week is not possible...if you plan to do it RIGHT! Not only are you required to perform as a barista the majority of your scheduled shifts, you are also asked to work at least 2 hours more each shift to do administration work. That equals for those of you that can't calculate 50 hrs. a week minimum. Then add on top of this training new baristas, shift supervisors, Assistant Managers, and External Store Mangers. You can definitely delegate the barista training to others, but YOU must do the certification(1 hr min.). Then take into account that ONLY Store managers can train new shift supervisors, unless it is on your Assistant Manager's Personal Development Plan to do so. As an MCM YOU must train all incoming RMT's(Retail Management Trainees) yourself. Not a short and easy task in even a 50hr week, especially if you have 2 or 3 RMT's at a time instead of 1. OK, let's say that YOU as a manager can do all of this within a 50hr work week. What about mandatory meetings, "volunteer time", cycle counts and inventories, promotional set-ups, ordering, payroll, scheduling, etc. Most of this cannot be delegated to your ASM's or Shift Supervisors, unless on their PDP's. And even then it must training WITH the Store manager. I was and still am considered to be a great multi-tasker, time-manager, and manager/leader. I have been in the industry for 15 years, and earned many awards and commendations for excellence in management/ leadership. I strongly believe in coaching, training, and giving ownership of a business to its team members, and helping them to outgrow those of us in the highest leadership position. This is the only way to help any business grow and continue to be successful. With that said, IT IS NOT possible to SUCCESSFULLY grow your business as a manager working only 40-50hrs a week! I have never been a "Meets Expectations" manager/leader, and would hope that those still working for this "Mega" brand LEADER would strive to "Exceed Expectations" everyday! If you are willing to do the best possible job for yourself, your partners, your customers, and your company...then YOU DESERVE to be compensated! I know all of the great benefits that partners recieve, but let's get real...THEY DON"T PAY the BILLS!

I've been an SM for 2 years now. I can count on one hand the amount of times I've gone into overtime. The managers who do get a lot of overtime are managers who cannot manage their own time. There is no need to spend a majority of your time on the floor. This is what you have hourly partners for. And no, I am not under-performing. I have worked in the Seattle market, and now in the Los Angeles market. My DMs have all given me rave reviews, and I am in the ADP (Advanced Developlement Program) to become a DM in a year or so. How do I do it? I act as a manager should and I get the results I desire. Those of you who are whinning about not being paid enough and not being given enough adnim time, GET OVER IT. Go find a company that will treat you better.

So I was an SM and became a DM and as the previous poster said I can count on my hand the number of times I truly had a bad week where I worked 50+ hours. I too was an MCM, a CF and LMS for the district. Oh boo hoo to you. I can work smart and hard at the same time. Obviously you couldn't. Get over your inadequacy as a manager.

[MGR]

I agree with the previous two posters wholeheartedly.

For the unfortunate and poorly trained manager who thought she had to work more than 50 hours a week, it's called "non-coverage" for a reason. Learn it. Love it.

You also sound like a pushover. You can say no to a DM (3 RMTs is ridiculous) and still have a career.

[Houston Native]

No need to make it personal...just stating the facts. As one of the ONLY store managers in the Houston market to CONSISTENTLY receive "Exceeds Expectations" on my yearly reviews by more DM's than I can count on my hand...I have never been called or considered inadequate! I am shocked that you as a DM has such a poor, child-like attittude! There is a difference in "not under performing" , having the ability to be in a market where you can easily be promoted, and TRULY leading/managing a successful, customer and partner centric store! Anyone can be promoted in this world without doing things the RIGHT way and for the RIGHT reasons! AND...until you have worked in EVERY market in retail North America, you CAN NOT tell people to "Get Over It" or state someone else's inadequacies! Not only was MY time managed well, but I was ASKED to do things that ARE NOT in a store manager's job description. I ran a VERY successful 4000Sq.Ft. store and helped to open many other stores while doing so. I too was rated as a "1" on the DM's whiteboard list, which put me as the best of the best! Every store that I ran with this company was an extremely troubled, poorly performing store before I took them and Led my TEAM to SUCCESS! All the while keeping EVERY line item on my P&L in line. That includes Labor which was ALWAYS under budget by 3+%! And inventory control of +/-$1!!!!! Legendary service average EVERY quarter of 4.3 stars and 95+ basic service in store and through my drive thru!!! You should really think before you speak or type comments that degrade people or their performance. I would hope your reactions are not this immature with your Store Managers!

[Houston Native]

....And by the way...your hours for CF and LMS are charged to a different department...not your store. And for last "MGR" that posted a comment...ever tried to say no to a region that is as "political" as Houston! I know what non-coverage is, but also know that the Houston Region pushes for keeping your labor balanced at "0%" or less. And what is YOUR idea of having a career? Being a SM forever! There is no need for you guys to attack something or someone personally. I too still love the company that I worked so hard for, and spend a good amount of money at my local stores. I still have 1500 shares of stock that I bought before I even worked for the company and do not plan to sell anytime soon. I just feel that Starbucks can be just as successful while compensating ALL of its management TEAM members.

sounds like someone thinks they deserve more than they are getting.

also judging by the numbers you rattled off. If you were always that far under in labor why weren't you investing that unused budgeted labor to offset the hours you were working over 40. Very simple thing to do. And I don't believe you were under labor budget by over 3%. That would imply that you were running WAY below what you should have been. There is no reason to run that low. The snaps were good hopefully they weren't from a Drive-thru store.

As for variance to ideal that is an ideal number. Coverage should be 0% and non-coverage 5.5%. Houston would be going against the company policy by saying they want a net 0% variance. Anyone who is managing to variance without thinking of true labor percent is doing it wrong.

Good for you if you think you are on the promotable list. Of course Texas is still one fo the faster markets out there and you should be DM in no time.

As for the rating of you and comparing yourself to all of the other SM in Houston. That's pretty annoying that you think you are better than all of your fellow SM's. I think you should take a step back and think about quality of life.

Not to get "personal" but why aren't you a DM after 6 years if you are so amazing? A little lacking in a few of the Competencies not relating to running such an AMAZING store perhaps?

[Houston Native]

Once again...GROW UP! There is life after Starbucks. While an amazing experience...I had already had bigger plans and was working FULL time while completeing my Masters in Business Administration! So like all things...I moved on once I finished! Don't judge unless YOU know all of the facts!! I have since moved on to a Area Manager position with one of the largest retailers in the U.S. I also have a Broker's License in Real Estate. And once again until YOU and others have experienced MORE than what you are getting now, YOU will not truly understand YOUR worth!

I never said I was better...EVERY corporate company has a rating system for its TEAM members! I was stating a fact. And as for the labor variance...I know Starbucks policy on labor variance. I also know that there is a difference in actual policy and what is truly expected and pushed upon you. I was EXPECTED to be under labor net/net. As you well know that is the easiest way for any business to save money. And as a good manager, I did as I was asked, and as ANY company would do. The variance of a net -3% is not impossible for a Drive thru store. Get your facts straight! Anyone that settles for less than they think that they deserve being compensated for should be happy in your position:)

running labor favorable 3% is different than running variance -3%. As for DT it's easy to run -10% variance if you want.

also how did you know what your rating was compared to other SM's. that is confidential information. was there some shady dealings going on in you area