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Starbucks managers, baristas in tip-jar dispute

RBR Staff Writer Published 30 May 2013

American coffee chain giant Starbucks' mangers have filed a case with New York Court seeking legal intervention to secure a share from barista's tips account.

Currently, the gratuities are shared with baristas and shift supervisors; however, salaried assistant managers are claiming their rights over the tips.

The court has sought for definition of an employer's 'agent' asking the state Court of Appeals to interpret New York labor law, reported Daily Mail.

Assistant managers' representative attorney Adam Klein remarked that the managers have right over the tips citing the time they spend in the services of customers.

Since they lack the authority to hire and terminate staff, they should not be considered as company agents as per the law, Klein claimed.

Besides, baristas' representative attorney Shannon Liss-Riordan noted that shift supervisors should be excluded from the tip jar branding them as company agents as they make work assignments and have authority over baristas.

With the current happenings, Hospitality industry groups expressed their concerns stating that the state court's decision would affect around 42,000 New York businesses across the state as well as a quarter-million hospitality industry workers.