Starbucks baristas told to share tips

Supervisors get a cut, New York court says

ALBANY, N.Y. — Starbucks baristas must share their tips with shift supervisors, but assistant managers are left out in the cold, the state’s highest court ruled Wednesday.

The Court of Appeals found that shift supervisors do much of the same work as the coffee servers and therefore get to share in the tips. It also ruled that the company, which is based in Seattle, can deny those tips to assistant managers.

The ruling, on two lawsuits, backed Starbucks’ policy of divvying up tips, saying it’s consistent with labor law.

Hospitality industry groups say the court’s decision probably will affect policies at similar restaurants and coffee houses and impact 42,000 businesses statewide and a quarter-million hospitality industry workers in New York City alone.

The New York State Restaurant Association, which represents more than 56,000 restaurants, bars and clubs, called the decision a win for all New York hospitality employers seeking clarity on how to compensate employees.

The association filed a statement in the lawsuits supporting Starbucks Corp., which had said that its assistant managers shouldn’t share in the tips.

At a Starbucks on Manhattan’s West Side, baristas said company policy did not allow them to comment, and customers were split on the question.

“Whoever is directly serving you should get the tip,” said Marco Tan, a data analyst sitting at a table with his coffee. “Why? Because they’re helping you, and someone else isn’t.”

Evren Vural, an architect, wasn’t so sure. “If the barista and the supervisor are doing some of the same work, they should share,” he said, adding, however, that if the supervisor is not doing the work, “then it’s not fair to share.”

Starbucks spokeswoman Jaime Riley said: “We’re pleased the court found our customers should have the option to reward our partners for providing great service, and we’re pleased the New York Court of Appeals agreed our tipping policy is fair and appropriate under New York state law.”

Starbucks baristas are part-time workers who serve customers and share tips weekly based on hours worked.

Shift supervisors also are part-time wage workers who mostly serve customers but also assign baristas, provide input on their performance and direct the flow of customers.

Assistant managers are full time, get some benefits such as paid holidays and vacations, and are eligible for bonuses.

Attorney Adam Klein argued that assistant managers spend most of their time serving customers and should get a share of the tip jar. Klein said his clients don’t have the power to hire and fire, which means they aren’t “company agents” under labor law.

Judge Victoria Graffeo, in writing the majority decision, said employees who regularly provide direct service to customers “remain tip-pool eligible” even if they have some supervisory responsibility.

“But an employee granted meaningful authority or control over subordinates can no longer be considered similar to waiters and busboys ... and, consequently, is not eligible to participate in a tip pool,” she wrote.