Starbucks, one of the largest coffee chains in the country with over 11,000 stores, has suffered an embarrassing setback.
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“Under California Labor Law, it is for employers to implement tip pools where employees are required to share tips, but recipients of the pool share may not be owners, managers or supervisors,” Cowett ruled.
In other words, shift supervisors cannot take a share of the baristas’ tips. It is the workers’ right alone to earn tips for the work they do every day. Skimming tips allowed the multi-billion-dollar corporation to increase the take home pay of shift supervisors without spending a dime out of its own pocket.
Multiple lawsuits against Starbucks have been filed by employees to fight the usage of tips to pay shift supervisors. Tips at the coffee chain are used to pay shift supervisors rather than going to baristas.
Starbucks has claimed that it has been one big misunderstanding between customers and workers on the issue of tipping in stores. They claim that tips can go to baristas and shift supervisors, and that shift supervisors do not have any managerial authority. Since customers cannot tell the difference between supervisors and baristas, the company argued, it is okay to use tips to pay supervisors.
But the federal court—which is no friend of workers—did not buy this twisted logic.
Starbucks has disagreed with the California Superior Court decision and vows to appeal. The big chain is now facing lawsuits in New York and Massachusetts.
“I feel vindicated,” said Jou Chou in a written statement. “Tips really help those receiving the lowest wages. I think Starbucks should pay shift supervisors higher wages instead of taking money from the tip pool.” Chou, a former Starbucks barista, originally filed the lawsuit.
Recent victories for workers at Starbucks, including the establishment of unions, should be a lesson for all workers in service industries that it is possible to struggle against low wages and oppressive working conditions and win.
