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STARBUCKS HANGS ON TO ITS $86 MILLION TIP MONEY -- BUT WHAT'S NEXT?

September 10, 2009 | Posted by mike.young@alston.com | Topic(s): Wage and Hour Laws , Wage and Hour Litigation , FEHA and Other State Laws, Class Actions, Employment Litigation

Remember way back when, when we reported on the reversal of the $86 million Starbucks tip pool verdict?  You can read about it here.  At the time, we agreed with the court's decision, opining that:

It made no sense to deprive hard working baristas, who happen to also be shift supervisors, of tips they helped generate.  These folks steam the soy and press the espresso, standing shoulder to shoulder with their barista brethren, doling out caffeinated charm to an often charmless public, and deserve the tips just as much as those they supervise.

Not surprisingly, the winners of that $86 million windfall were not pleased to see their tip money evaporate like the steam off a freshly foamed decaf cappuccino, dusted with cinnamon (I'm telling you, with similes like this, I should have been a novelist!).  They did what anyone would do in their shoes, they pleaded with the Supreme Court to review the appellate ruling.

Alas, it was to no avail.  Yesterday, the Supremes in their infinite wisdom declined to hear the case (only Justice Werdegar voted in favor of review), thereby leaving the tip jar $86 million short, according to the plaintiffs. 

So now what?  It's not clear there is any more steam in this engine (I'm on a roll).  The appellate court ordered that judgment be entered in Starbuck's favor, and that's apparently the end of it.

Or is it?  According to the IWW Starbucks Workers Union, it is already gearing up for a new class action, this one (according to the Union's website) based on alleged use of "harsh police-style interrogation tactics" that has led to "numerous false confessions, which Starbucks has then used to terminate or extort 'restitution' from employees."

As I said before:  "I think I’ll grab my decaf cappuccino and watch the show."