California Court of Appeals overturns workers win in Starbucks.

The California Court of Appeals has just reversed the Starbucks award. The difference, according to the appellate court, was that the trial court based its decision on cases finding violations where tips given to individual employees were required to be pooled and ultimately distributed to managers among others. In this case, however, the tips were initially given in a "tip jar"--not to an individual employee. According to the court, Distributing initially pooled tips to managers did not violate the California law.

A California district court had awarded $100 million-plus award against Starbucks to baristas who alleged that the company's requirement that tips for baristas be shared with shift supervisors violated California state law that prohibits managers and supervisors from sharing in employee gratuities.

http://www.courtinfo.ca.gov/opinions/documents/D053491.PDF
JoeC (McGruff)

I wonder if this will be further appealed.

If this was tried in Federal District court I find it hard to believe that the Supreme's would take it on.

If it was in a State Court then the California Supreme Court might be interested.

Eric