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$106 Million Award For California Starbuck’s Employees For Tip Pool Violations

Published by on March 24, 2008

A California judge, in a four paragraph order, has ruled that Starbuck’s violated California law by sharing tips with supervisors.   The $106 million award includes $19 million in interest.  The court also entered an injunction barring Starbuck’s supervisors from sharing employee tips in the future. The story is well covered here (Manpower Employment Law Blawg), here (Wage Law — […]

A California judge, in a four paragraph order, has ruled that Starbuck’s violated California law by sharing tips with supervisors.   The $106 million award includes $19 million in interest.  The court also entered an injunction barring Starbuck’s supervisors from sharing employee tips in the future.

The story is well covered here (Manpower Employment Law Blawg), here (Wage Law — has quotes from the parties to the case), here (Point of Law), here (Workplace Prof Blog) and here (Law.com).

This case only highlights the need for employers with operations in California to spend the time and money to review their employment and wage/hour practices for compliance with California law.  Wage-related class actions are now legion in California and can easily result in significant legal expenses and, if you lose, damages.  If you have operations in California, do not assume that you are in compliance merely because you are in compliance elsewhere.

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