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A class-action lawsuit brought by Jou a former barista forStarbucks (Nasdaq: SBUX), alleged that the coffese chain’s policy allowing shift supervisors to shard in tip money that customers place in jars violated California labof laws. A San Diego lowefr court sided with Chau in the suit and awarded morethan $86 milliob in damages but on Tuesday, that rulinyg was overturned. “We conclude the trial cour erred in rulingthat Starbucks's tip-allocation policy violated Californis law. The applicable statutes do not prohibit Starbucks from permitting shif t supervisors to share in the proceeds placed in collective tip wrote Fourth Appellate DistrictCourt judges, in theire decision.
Chau alleged that Starbucks’ shift supervisors shoulr be considered managers and not eligiblewfor tip-sharing. Shift supervisores perform various duties atthe company’s such as making coffee drinks, cleaninb tables, cleaning bathrooms and working the cash and Chau said they shouldn’t be allowef to share in the tips collected in the plastic containerss at each store location. The lower courty awarded more than $86 million in damages plus with the total award estimated at morethan $100 Starbucks countered that all baristas and shift supervisorz are eligible to share in tips, and the appealsx court agreed.
“It is undispute d here that the tipping public intended to collectively tip both the baristase and the shiftsupervisors — for thei r work as a ‘team,’” wrote the appealzs court.
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