With troubles in the economic and labor realms still percolating like the black coffee sludge in an old-time coffee pot, it's no wonder that many are now looking to none other than popular coffee purveyors Starbucks and the way the company is or is not allowing its New York storefront employees to dip into the hallowed tip jar.
No less than the Court of Appeals has been brought in to make a decision regarding labor laws in New York and whether or not assistant managers and shift supervisors in the state are legally entitled to a share of the tips that have until now been left in the hot hands of the baristas and shift supervisors only.
According to the Associated Press, the trouble lies in the facts that:
A) Baristas are the ones who are working most directly with the customers (who are doing the tipping)
B) Assistant managers do not interact with customers but still would understandably like a share of the tips earned over the hours they're there
C) Shift supervisors have a hybrid role in performing some administrative duties but also often interact directly with customers
Once again, baristas and shift supervisors in New York get tips; assistant managers (who are considered "agents" under state labor laws) don't. A bigger issue is how the decision will affect other hospitality workers and industries, including the 42,000 such businesses statewide and quarter-million employees in New York City alone.
"Starbucks has not seriously disputed that its shift supervisors are supervisors," attorney Shannon Liss-Riordan said in her brief.
Liss-Riordan is arguing on behalf of baristas (such as Jeana Barenboim and Jose Ortiz, among others) who do not believe that their supervisors should be allowed to dip into the shops' tip jars.
On the other side of the issue are the assistant managers who are being represented by Adam Klein. Klein's argument is that assistant managers work with customers alongside baristas and are not in charge of hiring or firing employees, meaning they should not be deemed "agents" by New York state law.
Starbucks spokesman Zack Hutson has made it clear via AP that when it comes to the 413 company-owned stores in New York (as of the last fiscal quarter), its policy is firm in allowing shift supervisors and baristas to share in tips alone.
These shift supervisors apparently spend "more than 90 percent" of their time serving customers, after all. Furthermore, assistant managers who are excluded from sharing in tips are salaried and receive other benefits that "subordinates" do not, including performance-based bonuses.
This policy of Starbucks is employed in stores throughout the country, but not in other nations, as labor laws differ elsewhere.
The question then remains: Who exactly is an "agent" and, thus, who is legally permitted to share in tips in New York?
Let us know your thoughts on this issue in the comments below!
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