Monday, March 24, 2008

Starbucks Tip Pool Ruling

A San Diego Superior Court Judge has issued a $100 million-plus judgment against Starbucks for its practice of allowing supervisors to share in barista tips.  Under California Labor Code Section 351, it's illegal for supervisors to share in tips left for employees.  This statute has been on the books since 1937, and I suspect that it was motivated by the New Deal-Era mentality that workers shouldn't be exploited by their capitalist employers.  The Starbucks ruling, however, shows how ridiculous this approach can be when applied to specific factual situations. Far from being members of the capitalist ruling classes, the Starbucks managers typically work the counter and make coffee for customers.  These customers naturally want to tip the person making their coffee.  Under this ruling, they can't do that.  For example, one of the managers affected by the ruling, shift supervisor Robert Velasquez, 18 years old, is often the only employee working at the crowded Starbucks at La Brea and San Vicente.  "When there are no baristas here, supervisors are the ones who make the drinks.  And we should be able to get the tips," said Velasquez.  Velasquez said he used his $2.50 an hour for tips for gas money, and that he would lose about $100.00 a week because of the ruling.  A harsh way to learn that he's a member of the ruling classes under California labor law.  

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