Starbucks' Tip Policy Held to Violate Minnesota Law in Lawsuit Brought by Nichols Kaster, PLLP

On September 30, 2009, Judge Patrick Schiltz of the Federal Court for the District of Minnesota declared that Starbucks Coffee Company's tip distribution policy violates Minnesota law. Faced with a request for clarification from Starbucks, Judge Schiltz affirmed the breadth of his holding, writing, "Starbucks' policy violates Minnesota law by requiring employees who work on a particular shift to share tips received on that shift with employees who do not work on that shift."

In spite of Judge Schiltz's unequivocal declaration of the policy's illegality, Starbucks has yet to change its policy. E. Michelle Drake, attorney for the Plaintiffs, noted the high-risk nature of the strategy Starbucks has decided to pursue. "Minnesota law provides for a $1,000 civil penalty per violation. By not changing its policy, Starbucks may have already subjected itself up to civil penalties in excess of a million dollars -- just in the past few weeks alone."

While Judge Schiltz denied the present Plaintiffs' bid for class certification, individuals may still bring their own cases, either by filing individually or by filing in groups. Such individuals would be eligible to recover damages, liquidated damages, and attorneys' fees and costs.

Nichols Kaster, PLLP, the law firm bringing the class action lawsuit on behalf of baristas, is actively seeking current and former Starbucks employees as clients. If you have worked for Starbucks as a barista during the last three years in Minnesota, please contact Dana Landis at (612) 256-3228 or by email at dlandis@nka.com. Additional information regarding the case can also be found at www.nka.com.

Contact:
Michelle Drake
(612) 256-3249

SOURCE: Nichols Kaster, PLLP

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