A California appeals court has determined that Starbucks did not violate state labor laws by allowing shift supervisors to share the tips left by customers in collective tip boxes and thus, overturned an $86 million award made to a class of current and former Starbucks’ baristas. Chau v. Starbucks Corp., No. D053491 (Cal. Ct. App., decided June 2, 2009). Because shift supervisors serve customers and rotate such duties with baristas, the appeals court determined that the shift supervisors were among those for whom the tips were intended. So ruling, the court distinguished Starbucks’ policy of equitably distributing collective tip-box proceeds from the prohibited practice of mandatory tip pooling.
Category Archives Issue 306
The multitdistrict litigation (MDL) court in Missouri before which nearly 20 putative class actions against Aurora Dairy Corp., an accredited organic certifying agent and several retailers had been consolidated for pre-trial proceedings, has dismissed the lawsuits with prejudice finding that federal organic food laws preempt the claims. In re Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL NO. 08-1907 (E.D. Mo., decided June 3, 2009). Relying on a U.S. Department of Agriculture (USDA) investigation that found the dairy in violation of national organic program requirements relating to pasturing and organic management, the plaintiffs alleged violations of various state consumer protection laws, breaches of express and implied warrantees, negligence per se, negligent misrepresentation, and unjust enrichment. The court discusses at length the program under which Aurora Dairy conducted its operations with the overall supervision and control of USDA. While the court found that the litigation claims were not expressly…
The Federal Trade Commission (FTC) has announced its approval of a final consent order in its challenge to the merger of Whole Foods Market, Inc. and Wild Oats Markets, Inc. Under the agreement, Whole Foods will sell 32 of its supermarkets and give up unrestricted rights to the “Wild Oats” brand. When the agreement was announced in March 2009, FTC Chair Jon Leibowitz claimed, “As a result of this settlement, American consumers will see more choices and lower prices for organic foods.” Whole Foods and Wild Oats completed their merger before an appeals court finally agreed with the FTC that the merger could have anti-competitive effects and allowed it to move forward with administrative proceedings against the company. Thus, it was unclear until the consent order was filed what remedies could be ordered if the FTC proved its case. See FTC Press Release, May 29, 2009.
Oregon’s Senate has reportedly approved a bill (H.B. 2726) that would require restaurants with more than 15 locations nationwide to post information about calories, saturated fats and sodium for all menu items. According to a news source, some 69 percent of state residents polled have said that they want more nutritional information on restaurant menus. The legislation, which now awaits the governor’s signature, would require the information to be posted on menus, menu boards and drive-through displays. See Oregon Senate Democrats Press Release, June 1, 2009.
The U.S. Department of Agriculture (USDA) has issued a proposed rule that would amend its national list of allowed and prohibited substances for organic crop production and organic processing. The rule adds six substances, including the fortified cooking wines marsala and sherry for organic processing, and removes one substance from the list. Written comments must be received by August 3, 2009. See Federal Register, June 3, 2009.
The Food and Drug Administration (FDA) has issued a final rule that requires bottled water manufacturers to face stricter standards to prevent E. coli contamination . All manufacturers are currently required to test source water for germs each week, but starting December 1, 2009, if tests prove positive for E. coli, companies must explain in writing how they eliminated the bacteria and retest samples before use. FDA states that “bottled water containing E. coli will be considered adulterated and source water containing E. coli will not be considered to be of a safe, sanitary quality and will be prohibited from use in the production of bottled water.” E. coli infection indicates fecal contamination that can apparently cause stomach cramps, diarrhea or possible fatal infections. Although bottled water is currently tested for coliforms–a group of mostly harmless bacteria–and fecal contamination, the new rules require the water source itself to be tested.…
U.S. Food and Drug Administration (FDA) Commissioner Margaret Hamburg has expressed support for the Food Safety Enhancement Act of 2009, which seeks to increase the agency’s authority over U.S. and foreign food producers, including the power to issue mandatory recalls of tainted foods. “FDA needs new legal authorities to succeed in these roles and protect the public health,” she was quoted as saying before the U.S. House Committee on Commerce and Energy on June 3, 2009. “This legislation would provide those tools.” A group of congressional Democrats in late May released a discussion draft of the Act, which would take effect in 18 months if passed. The legislation includes provisions that would (i) create an up-to-date registry of all food facilities serving American consumers, (ii) require such facilities to pay a $1,000 fee to generate resources to support FDA oversight of food safety, (iii) strengthen criminal penalties and establish civil…
Food and Drug Administration (FDA) Commissioner Margaret Hamburg has reportedly indicated that the agency will review its 2008 decision that bisphenol A (BPA) in children’s food and beverage containers is, for the most part, safe. An agency spokesperson has apparently indicated that a new decision on the chemical, which is also used to seal canned food containers, will be released within “weeks not months.” The action comes after House Energy and Commerce Committee Chair Henry Waxman (D-Calif.) asked the commissioner to reconsider the agency’s decision in light of “longstanding questions about the scientific data relied on by FDA under the previous Administration, as well as new press accounts detailing the influence of industry lobbyists on FDA’s scientific analyses.” Waxman cites several Milwaukee Journal-Sentinel articles, based on agency emails and a leaked industry report of a public relations strategy meeting, apparently indicating that (i) “when FDA conducted its review of BPA,…
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