NY High Court Backs Starbucks' Tip-Distribution Policy

Law360, New York (June 26, 2013, 7:42 PM EDT) -- New York's top court on Wednesday ruled that Starbucks Corp.'s shift supervisors can partake of the tips left for store employees, but the Seattle-based coffee giant's assistant managers exert enough control over subordinates to render them ineligible for gratuities under state law.

In responding to questions posed by the Second Circuit, which is hearing appeals of two suits by different sets of Starbucks workers both challenging the company's tip-distribution policy, the New York State Court of Appeals said that, though shift supervisors have limited managerial responsibilities,...
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