Okay, I know this headline sounds very porn-ish, but I couldn’t resist. This story is just too good to pass up. Starbucks, a company that spends an inordinate amount of money to buy fair trade coffee, teach farmers in developing countries to grow coffee beans and locate stores in urban communities couldn’t see the good in giving their baristas–the men and women who are paid the least and do the heaviest lifting in the stores–the tip jar take.
Instead, Starbucks’ shift supervisors were allowed to take “their fair share” (according to Starbucks’ spokeswoman Valerie O’Neil) of each day’s tips, splitting the tips as if they were just another one of the workers. I’m all for fairness, but come on Ms. O’Neil. Supervisors, even the hourly sort, earn more (and rightfully so) than the regular employees (in Starbucks’ case, baristas), so they have no “fair share” of tips. While this is my opinion, it’s supported by California law and now by a judge’s decision against the mega-retailer.
California law allows pooling of tips, but prohibits supervisors, managers and owners–anyone with authority over workers–from being paid out of the pool.
On March 19th, Judge Patricia Y. Cowett of the San Diego Superior Court issued the ruling against Starbucks. Cowett’s determined that under California law, employers are prohibited from taking employees’ tips. The suit, Chou v. Starbucks, was filed in 2004 on behalf of 100,000 Starbucks baristas in about 1,400 California stores.
Judge Cowett blocked Starbucks from sharing the tips based on testimony that the company “continues to utilize the distribution of tips from the tip pool to compensate shift supervisors as well as baristas”. She ordered Starbucks to make restitution to the tune of $87M, plus 7% in annual interest, for total restitution of $105M.
Starbucks plans to appeal the ruling. Arrgghh!
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