Saturday, July 6, 2013

U.S. Court Rules Starbucks' Baristas Must Share Tips

While reading the Toronto Star last week, I came across an
article from the Associated Press. Seems that a recent ruling by the New York Court of Appeals states that Starbucks' baristas must share their tips with shift supervisors.

The ruling, which came in response to two lawsuits against the coffee shop chain Starbucks, is said to have implications for the 42,000 businesses operating statewide and a quarter million hospitality workers in New York city alone. The ruling found that the policy of Starbucks was consistent with labour law.

The court found that shift supervisors do much the same work as the coffee servers and therefore have a right to share the tips. The court also found that assistant managers are not eligible for a share in tips, as they are full-time employees who have some company benefits and are eligible for bonuses. Both baristas and shift supervisors are part-time employees who mostly serve coffee to customers. Shift supervisors have the additional task of assigning baristas and directing the flow of customers.      

Speaking on behalf of assistant managers working for Starbucks, lawyer Adam Klein argued that assistant managers do not have the power to hire and fire employees and also spend much of their time serving coffee to customers.

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