Federal Judge Declares Starbucks Tip-Sharing Policy Is Illegal

10/21/2009

On September 30, 2009, Judge Patrick Schiltz of the Federal Court for the District of Minnesota declared that Starbucks Coffee Company's tip distribution policy violates Minnesota law. Faced with a request for clarification from Starbucks, Judge Schiltz affirmed the breadth of his holding, writing, “Starbucks' policy violates Minnesota law by requiring employees who work on a particular shift to share tips received on that shift with employees who do not work on that shift.” While Judge Schiltz denied the present Plaintiffs' bid for class certification, individuals may still bring their own cases, either by filing individually or by filing in groups. Such individuals would be eligible to recover damages, liquidated damages, and attorneys fees and costs. Current and former Starbucks baristas in Minnesota should contact Dana Landis at 612-256-3228 or dlandis@nka.com for additional information. Click here for full press release.