California Ruling Doesn't Slow Starbucks Tips Suits

Recently, the California Supreme Court declined to review a Court of Appeals decision overturning a $105 million verdict against Starbucks relating to its tip policy. Starbucks has a policy of dividing tips between counter service "baristas" and supervisors. Based on the narrow facts of the case, the California Court of Appeals found the Starbucks system was not a violation of the California tips law. Since state tips laws vary greatly, however, the California ruling has had little impact on similar lawsuits filed around the country including in Massachusetts, New York and Minnesota.