Starbucks' Tip Dilemma: Update

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  CCRider03/28/08 Report as spam
  1

  It's Not That Clear Cut

  I read all the responses about the tip jar settlement but it was never clear whether a lawyer was consulted by a disgruntled employee or a lawyer went looking for the case.
  
  That notwithstanding, the whole subject of tips and how they are distributed is one that should go away by paying people a decent wage for the work they do.
  
  Regardless of whether a manager "rolls up his/her sleeves and pitches in," they are usually paid better than the counter staff and are expected to do what is necessary to keep the company successful. They also have their pay incentive packages that are negotiated without the "tip-receiving staff" every being able to become eligible for a portion of those incentives.
  
  Therefore, I think the settlement was the right way to go and that Starbuck's should look very carefully at their pay incentive packages so that this does not happen again by paying people a decent wage in the first place so that they do not have to pray for tips to survive.

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  recjr03/29/08 Report as spam
  2

  Show me one lawyer

  Name me one lawyer, whether receiving a complaint from a disgruntled employee or chasing Starbucks "baristas" would have said, "No, I think I'm gonna pass on this one."
  
  Lawyers have made a cottage industry, and perhaps paid for many of their own cottages, by going after "big business."
  
  It would be interesting to know whether the employee did their absolute best to discuss this issue "in-house" and through the chain of command prior to seeking "out-side" counsel.
  
  While it may seem I am trying to defend "big business," and perhaps I am, I am tired of frivilous lawsuits seeing the light of day. What do you think is going to happen to the price of a cup of coffee if these lawsuits continue? First California, now Masschusetts, where does it end? If the employee doesn't like the tip situation, move on where the tip situation seems fairer to him or her. No where is it mentioned that Howard is trying to help defray the cost of health benefits for employees (the most costly, and ever-increasing more costly, part of owning a business). Hmm, I don't like the fact that we all are sharing tips, but I do like the fact that my company is paying for my health benefits. These events have potentially serious repercussions. This is a great example of CHAOS THEORY = 1. one employee doesn't like having to share tips, 2. lawyer finds out and pursues Starbucks with a vengeance, 3. another Starbucks "barista" finds out and seeks an attorney, 4. attorneys confides with other attorneys, 5. TV ad says, "If you have ever been a Starbucks "barista" and feel as if you had to share your tips, contact "So and So" lawfirm, 6. Attorney "bandwagoning" occurs, 7. Starbucks "lawyers" up, 8. Starbucks loses, cost of coffee goes up, 9. If consumer doesn't want to pay the increase in cost, 10. health benefits are minimized or go away all together, 11. layoffs may occur, 12. consumer stops patronizing Starbucks because either the cost of goods sold is too much or they don't like the negative press, 13. One man's dream of having his own business which provides jobs for the community, provides health benefits for his employees, by all accounts is a good corporate steward by redefining corporate leadership, ends because of one employee. I know this is a very simplified version of the various scenarios that could occur, but unfortnately I have seen it happen first hand.
  
  While American-based businesses continually look for ways to be more efficient, productive, and successful; it doesn't take too many of these scenarios to "off-shore" business where companies can mostly avoid these types of events.

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  adaiyeg03/28/08 Report as spam
  3

  RE: Starbucks' Tip Dilemma: Update

  How many people really tip over the counter. That alone means the wait staff should receive the tips solely and based upon CCRider's comments above regarding a supervisor's incentive package. To elaborate, why would Starbuck's even have an over the counter tip request when the wait staff does not actually service the person at a table. They should pay the wait staff the minimum wage or better and forget about the tipping process all together. Although Mr Chernault had some good things to say about the CEO, I feel that this whole over the counter tip request is irresponsible and tacky.

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  null03/28/08 Report as spam
  4

  RE: Starbucks' Tip Dilemma: Update

  Money-grubbing lawyers is an external issue and reflects on society. Sharing tips is a company issue and reflecting directly on the character of the company and its management.

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  TheresaZ03/28/08 Report as spam
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  Ethics of Sharing Tips

  First, let me say that I don't drink coffee, and have never been in a Starbucks, but I am familiar with other counter service establishments from a business perspective. At least in our state, an establishment such as Starbucks that doesn't normally have wait-staff would be required by law to pay all its counter staff at least minimum wage. The earlier posters said that Starbucks does this as well.
  
  In that scenario, no one is relying on tips to earn their living. If the job doesn't pay enough, that is between the company and the employee.
  
  Some counter service establishments do not have a tip jar and don't accept tips. But in some cases, the customers may want to tip, and the owners have provided a community tip pool that allows those customers who want to do so. How that tip money is divided up is solely at the owner's discretion according to law, since it is a gift to the business, and not earmarked for a specific person, nor is it being used to justify paying the person less than minimum wage.
  
  If a customer wants to tip a specific person, they need to give the tip to that person directly and indicate it is a tip. This may or may not be in violation of the company's policy about accepting individual tips, and may land the employee in trouble if he/she accepts it, but again, that's not a legal issue over the tip. Maybe we don't like it, and maybe it offends our ethics that this is the outcome, but no amount of polling is going to make everyone agree.
  
  (Incidentally, in the situation where an employer justifies paying less than minimum wage to an employee who earns tips, the total amount of tips must be reported to the employee and the IRS as income, and IF the employee did not earn enough in tips to make it to minimum wage for the total hours worked, the employer must make up that difference to the employee. Not all employers do, but THAT is a violation of the law that can be prosecuted--if only tipped employees knew to do so.)

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  RayTowle03/28/08 Report as spam
  6

  RE: Starbucks' Tip Dilemma: Update

  William,
  
  There is a lot going on here legally, ethically, organizationally, etc.
  
  Legally: What law? Nationally, its the Fair Labor Standards Act of 1938, as amended. In Massachusetts: Its even more focused, their Starbucks is wrong.
  
  Legally: Who enforces it? the Wage & Hour Division of the US Department of Labor. What is and what is not an Exempt Employee, (Exempt from the law) a Non-exempt Employee (Not exempt from the law) and an Hourly Employee AND what is not one? Find out who is an employment attorney, other than for Starbucks or a PHR or SHHR ask ask them. They know.
  
  Ethically: If the customer is offering a tip as a gratuity, it should go to the individual or the group intented by the customer.
  
  Organizationally: Sometimes senior management make decisions such as, let's just try it and risk the penalty." or words to that effect; but I'm NOT saying that happened here. I don't know.
  
  Just my $0.02 worth.
  
  Ray

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  mmoi03/28/08 Report as spam
  7

  RE: Starbucks' Tip Dilemma: Update

  The issue is integrity and, perhaps, felony. Felony issues may arise because there can be extortive behaviours underlying the Starbucks' policy which surely was peeled by attorneys! Labor law does not embody separate "tip" guidelines for managers. IRS poses a set percentage of "tips" which waitstaff MUST incorporate on personal tax forms. Questions include: [1] Did Starbucks inform prospective managers that tipsharing should be reported so that the baristas would not be taxed at the full IRS percentage when in fact 3rd parties skim the top; [2]Has the IRS stepped in to define taxable interests--regarding managers' listing "tipshares" on tax forms; [3]Does each state revenue department have an interest in taxes NOT recognized. Management with or without 'rolled-up sleeves' is not the usual prototype of "tip" earners. WHY did Starbucks not use Starbucks' BUCKS at the IRS percentage rate to compensate Starbucks' managers for rolling-up their sleeves when helping baristas AND was this "dip into tip" part of the Starbucks' incentive package for which the accounting is lost somewhere in Starbucks' ledgerlands??

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  recjr03/29/08 Report as spam
  8

  I agree

  While it does seem rather tacky to put a tip jar in front of a customer, it happens, and because I like the customer experience, the product, the people working there, and what Howard has done and continues to do for his employees, I will tip because I want to (and not because I have to).

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  sbaroch04/14/08 Report as spam
  9

  RE: Starbucks' Tip Dilemma: Update

  Starbucks' staff are not paid tipped wages; therefore, tipping should be prohibited. If tips are collected???all HOURLY employees should be entitled to enjoy the pool of tips. However, in industries where tips are usual and customary and staff are paid tipped wages (less then minimum wage), then the supervisors and managers should be excluded, disallowed, or illegal to participate.