A California Court of Appeal has overturned a recent jury verdict awarding a class of former and current Starbucks employees $86 million in tips. The trial court found Starbucks’ tip allocation policy, which required its baristas to share tips with their non-exempt shift supervisors, in violation of California law. In overturning the verdict and entering judgment in favor of Starbucks, the Court of Appeal held that California law does not “[prohibit] an employer from allowing a service employee to keep a portion of the collective tip, in proportion to the amount of hours worked, merely because the employee also has limited supervisory duties.”

Chau v. Starbucks, Court of Appeal, Fourth Apellate District, Case No. D053491

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