Starbucks Files Brief Seeking to Uphold Judgment in Tip Dispute

Starbucks Corp. has filed its response in the Second Circuit Court of Appeals in
a dispute over tip sharing, asking the court to affirm the district court’s grant
of summary judgment in its favor. Lawrence v. Starbucks Corp., No. 11-3199
(2d Cir., brief filed February 22, 2012). Additional information about related
litigation involving Starbucks baristas and shift supervisors appears in Issue
256 of this Update. The company asserts that the district court correctly held
that (i) New York labor law does not grant plaintiff assistant store managers
the right to participate in a tip pool, and Starbucks did not “demand,” “accept,”
or “retain” their tips; (ii) Starbucks’ policy of allowing only baristas and shift
supervisors to share tips is consistent with state law; and (iii) assistant store
managers exercise control over their subordinates’ employment status and
are thus “agents” prohibited from sharing tips under state law.