California Court Reverses Starbucks Tip-sharing Decision

A California appeals court reversed a $105 million class action verdict against Starbucks Tuesday, in a dispute over tip-sharing at the coffee retailer.

Jou Chau, a former barista at Starbucks, sued in 2004, alleging the companywide tip-sharing policy violated California law because it included shift supervisors in tip pools. State law regulating tips aims to prevent company owners or managerial employees from taking tips away from the people engaged in customer service.

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Christopher Danzig

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