Starbucks wins California tip-pooling case appeal - Los Angeles Business from bizjournals:

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A class-action lawsuit brought by Jou Chau, a formerr barista for Starbucks (Nasdaq: SBUX), alleged that the coffee chain’s policy allowing shift supervisors to share in tip moneu that customers place in jars violated Californislabor laws. A San Diego lower court sidef with Chau in the suit and awardede morethan $86 million in damagess but on Tuesday, that ruling was overturned. “We conclude the triao court erred in rulingthat Starbucks'ss tip-allocation policy violated California law.
The applicabl statutes do not prohibit Starbucks from permittingg shift supervisors to share in the proceeds placed in collectivstip boxes,” wrote Fourth Appellate District Court judges, in theid decision. Chau alleged that Starbucks’ shift supervisor s should be considered managers and not eligiblfor tip-sharing. Shift supervisors perform various dutiesd atthe company’s stores, such as making coffee drinks, cleaninb tables, cleaning bathrooms and working the cash and Chau said they shouldn’ty be allowed to share in the tips collected in the plastic containeras at each store location.
The lowert court awarded more than $86 million in damages plus with the total award estimated at morethan $100 Starbucks countered that all baristas and shifr supervisors are eligible to share in tips, and the appeals courtf agreed. “It is undisputed here that the tippingv public intended to collectively tip both the baristas and the shiftysupervisors — for their work as a ‘team,’” wrotre the appeals court.