Chris Ayres in Los Angeles
Pick up your copy of Joy Division: Closer at WHSmith today
Up to 100,000 current and former Starbucks baristas — the people who make the low-fat-decaf-double-shot-venti lattes — have been awarded about $1,000 (£500) each in unpaid tips after a court ruled that supervisors should not have shared the gratuities.
The award, made by a judge at San Diego Superior Court, brings uncomfortable scrutiny to the low wages of America’s service employees, as well as its tipping culture, which often baffles visiting Britons.
It also comes at a time when Starbucks — the world’s largest coffee house chain that was once revered for its progressive ideas and financial savvy — is closing stores and reshuffling its management amid intense competition from lower-price rivals such as McDonald’s. In the past 16 months the company’s once unstoppable stock price has more than halved in value.
The first sign of trouble over the Starbucks tip-sharing policy came in 2004 when Jou Chou, a barista in the smart beach town of La Jolla, filed a lawsuit against the company for allowing his supervisors to take a cut of his gratuities. Two years later the lawsuit was granted “class action” status — meaning that Mr Chou could claim compensation on behalf of others, with any proceeds distributed after the conclusion of the trial.
According to blog postings by Starbucks employees, baristas make about $7 (£3.50) an hour, with supervisors — who are below assistant managers — earning an extra $1.50.
Mr Chou claimed that it was illegal in California for management to share employees’ gratuities and as his case progressed, it emerged that Starbucks supervisors typically claim about $1.71 an hour from the tip pool.
By multiplying $1.71 by the number of hours worked by supervisors at Starbucks between 2000 and 2008, the court arrived at the award of $86.6 million in back tips, plus an estimated $19.1 million in interest. Only current and former Starbucks employees in California will be able to claim their share of the compensation.
“I feel vindicated,” Mr Chou said yesterday. “Tips really help those receiving the lowest wages. I think Starbucks should pay shift supervisors higher wages instead of taking money from the tip pool.”
Patricia Cowett, the judge in the case, not only ruled in favour of Mr Chou but also issued an injunction ordering Starbucks to change its tip-sharing policy immediately.
Starbucks reacted furiously. Valerie O’Neil, a spokeswoman, described the award as fundamentally unfair and beyond all common sense and reason. It was “an extreme example of an abuse of the class-action procedures in California’s courts”.
Ms O’Neil also criticised the brevity of the judge’s ruling — it was only four paragraphs long — and said that the company would appeal.
A statement published later on the company’s website said: “Starbucks believes that our shift supervisors deserve their fair share of the tips that they receive from the tip jars in our California stores. We are disappointed with the decision by California Superior Court to take away that right and order that shift supervisors be prohibited from receiving tips. We also disagree with the court’s ruling to award damages under which the baristas will receive the tips that shift supervisors have earned in the past. We are particularly disappointed that the court’s decision, which is a mere four paragraphs issued after a lengthy trial, did not even address the obvious unfairness to our shift supervisors in denying them tips.”
Not all customers tip when they buy coffee, but some leave their change in the jar by the register, and others add $1 to their credit card receipt — the latter being a relatively new phenomenon that can make customers feel guilty if they leave the line marked “gratuity” blank (although for lower-priced card purchases, no signature is necessary).
Tipping in table-service restaurants is less controversial. Most Americans are happy to pay anything from 10 per cent to 20 per cent for service that is often far quicker and friendlier than in Britain. In some restaurants, a range of suggested percentage-based tips are printed on the bill.
Nevertheless, there are some Americans, like many visiting Britons, who always find a reason not to tip.
At Starbucks, the low wages and relatively meagre tips can affect morale, even with shift supervisors.
“I’ve been a shift supervisor for about seven months,” one posting on ihatestarbucks.com begins. “I’m at $8.24 per hour now. I get about 30 hours [of work] a week. I hate the first person who walks in the door [at 5am], usually they are waiting outside the door when I open it and I have to make myself smile.”
But it is the current and former baristas who spill the most vitriol online. At StarbucksUnion.com, a former employee wrote recently: “Many customers were rude and would annoyingly watch you make the drinks and ask if their drink was ready yet. Many of the duties also performed were janitorial, ie, mop the floor, clean the bathroom. At my store, all the manager ever did to show appreciation for the workers was to say, ‘You ROCK!’”
Explore your passion for food with the delights of Thai, Indian & Chinese cooking
In our new series, Tony Hawks takes a dry, wry look at modern life - junk mail, interminable meetings and snooty sales assistants
Read the training tips and advice that helped our London Triathletes
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles
2007
£30,000
2006
£14,337
2008
£39,937
Great car insurance deals online
c.£75,000
GlosFirstmeansbusiness
Gloucestershire
Competitive package
Npower
Midlands
£
£32,795 - £41,545
Universitry of Southampton
Southampton
Competitive Package
Npower
West Midlands
1 & 2 Bed apartments
From £249,995
Great Investment, River Views
Great Dubai Investment Opportunities
from £89,950
low-cost ownership homes in London
Multi–Centre 9 Nights
From only £925pp
View thousands of properties online with your Vacation Rental People
£POA
List your property with two leading travel websites
£POA
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Milkround Job Search - for graduate careers in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
I worked for Starbucks for six years, starting at Barista, then Shift Supervisor, then Assistant Manager. Shift Supervisors do all the same work as Baristas, plus the added responsibility of supervising. I believe they deserve the tips, but California law is against it, so they did break the law.
Robin, California, USA
Many don't realize that even though you may only see 3 or 4 Starbucks partners in a store at a time that the average store has 10-20 employees, depending on how busy they are.
Robin, California, USA
The tips are collected and totaled at the end of the week and divided by the number of hours worked by all workers, coming up with a per hour amount for each partner. The shifts are very likely to be the one making the drink, or ringing, or taking your order. Baristas are also very likely to be...
Robin, California, USA
...off the floor- putting an order away in the back, cleaning the lobby or bathrooms, taking out trash. There's no way to determine who earned the tip at any given time. I think Starbucks should pay their Shifts alot more than the $1.50 above Baristas to make it worth the added responsibility.
Robin, California, USA
Unless shift supervisors are actively contributing to the tip pool (i.e. making the coffee drinks for which baristas are tipped) they should not recieve a cut. The company should provide an adequate hourly wage (or salary) for its managerial staff that reflects their responsibilities.
Pooling tips between baristas and managers is a way for the corporate office to save money. It shouldn't be tolerated.
Sara, Providence, Rhode Island
I drop a buck in the tip jar from time to time; more for exceptionally good service, or a large party with a complex order. But not every time, and I keep in mind the meaning of "TIPS" - To Ensure Proper Service. It's a perc - not an entitlement. It is also well to keep in mind that a lot of us standing in line at Starbucks don't qualify as Mr/Ms. Moneybags, in any sense. I don't limit myself to a Venti brewed coffee every visit because I like it better than a Venti Latte with Vanilla syrup; I do it because there's a big difference between $2.01 and $4-something. It's also kind of silly to leave the price of the drink as the tip; restaurant waitpeople should be so luck as to get 100+% markup in tips.
The bottom line, here, is that it is not the responsibility of the American public to augment the rock bottom wages of service sector employees, but rather the responsibility of the service sector to pay some of the hardest working people in the world a wage on par with their effort.
Dean, Bellingham, WA
This is horrible, seeing low-paid workers fighting each other for the public's charity. Aren't we supposed to have living wages these days? Why on earth do workers have to rely on tips?
katarina, Bilbao, Spain
One of the reasons so many baristas stay wtih Starbucks is because anyone working more than 20 hours a week receives benefits (medical). This is rare for hourly paid workers and brings tremendous peace of mind. Living in California requires most young and/or single people to have at least one two jobs just to be able make ends meet. Hundreds of thousands of people of all ages share this experience in a society that does not provide socialized medicine.
sarah, san diego, California, USA
Tipping wait staff in a restaurant makes sense. Tipping a person for making you a cup of coffee - especially when they already receive more than the minimum wage - makes no sense. Only a fool would do it and only the greedy and self-entitled would ask for it.
ken, blandford,
If the U S is so good why on earth don't you pay your worker's a living wage. Tips are a left over from the last century.
Ken Abbott, Slough, U K
You get paid to do a job, if you don't like it, QUIT!
Topher, London, UK
let the customers decide with two tip jars one marked "coffee maker only" the other marked "all staff".
As every employee within the store from janitor to supervisor should be fairly rewarded for their effort whether its for cleaning the toilet or making sure overall service, cleanliness etc is up to scratch then i would imagine that the "all staff" jar would collect a bigger pot.
d,, London, UK
Gee- i thought the very reason that they put all the fancy machines and carried out the process right there in front of you was so that you would watch them make the drinks !! And any time a person with an attitude like the quoted person is making something that I am going to put in my mouth you had better believe I am going to watch them make it. And i certainly have asked at times if my drink was ready- but only when I could get the employee to take the time away from his personal conversation with his fellow employee about what he was doing that night . And as to having to mop the floor- welcome to the real world my friend !!
ian tindale, surrey, british columbia
I am a former Starbucks Shift supervisor and eventhough I don't work for the company anymore, the ruling of the California judge offends me.
We (the shift supervisors) earned tips just as much as the baristas did. We had to share hours with the baristas, share work on the floor, clean washrooms, put up with customers (even more than the baristas had to).
Supervisors are not salaried at Starbucks, so when there is no business their hours get cut - same as for the baristas. The $1.50 more that shift supervisors get is for a lot of other "management" work and honestly, I am not sure anymore if it was worth it. This $1.50 more doesn't inspire - the tips, as little as they were, gave us the feeling it is worth the effort - we make someone happy, people appreciate us. Don't take the tips away from the supervisors!
Polixenia, Toronto, Canada, Ontario
As a tipped employee and my government telling me that I make more than I do and penalizing me for not claiming what I did not make because the govt thinks I am lying...I agree with not tipping out in Starbucks or any restaurant for that matter. If the restaurants want to pay us less than minimum wage and want us to smile and bring their customers back, then let the customer show his appreciation of us by letting us keep all the money they leave for us. Most customers do not even realize that we have to give back about 15% to the company for them to distribute as they see fit. The restaurants need to pay the others a living wage and let us keep living on our tips without having to work 2 or 3 jobs. I have not received a check in over 10 years and not even a vacation check even tho I am eligible for 3 weeks a year. It is eaten up by the government. It would be nice to see a check, not a check stub. It would also be nice to be able to keep all the money I work so hard for.
Brenda, Forest City, North Carolina
The Baristas should be award money bonuses for appreciation every 30-90 days that can come from the revenues generated from that location, 10% is a good place to start. split among the 3-4 employees working there and this should be equally distributed and the manager should not even think about taking a larger percentage for themselves, it needs to be equitable and enforced.
Marcus Ridner, Farmers Branch, USA