In re Starbucks Employee Gratuity Litigation

264 F.R.D. 67, 2009 WL 4884163
CourtDistrict Court, S.D. New York
DecidedDecember 16, 2009
DocketNo. 08 Civ. 3318(LTS)(JCF)
StatusPublished
Cited by5 cases

This text of 264 F.R.D. 67 (In re Starbucks Employee Gratuity Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Starbucks Employee Gratuity Litigation, 264 F.R.D. 67, 2009 WL 4884163 (S.D.N.Y. 2009).

Opinion

Opinion and Order

LAURA TAYLOR SWAIN, District Judge.

Plaintiffs Jeana Barenboim (“Barenboim”) and Jose Ortiz (“Ortiz”) (collectively, “Plaintiffs”), formerly employed as Baristas in stores operated by Starbucks Corporation (“Starbucks” or “Defendant”), bring this putative statewide class action asserting various claims against Starbucks for alleged violations of several provisions of the New York Labor Law (“N.Y. Labor Law”). Plaintiffs’ first claim arises out of Starbucks’ policy of distributing tips to store Shift Supervisors, who Plaintiffs assert are agents of the employer and thus may not lawfully be included in the distribution of tips pursuant to Section 196-d of the N.Y. Labor Law. Plaintiffs additionally assert that Starbucks’ tip distribution policy constitutes an illegal “kick-back” of wages and an unlawful deduction of wages in violation of Sections 198-b and 193, respectively, of the N.Y. Labor Law. Plaintiffs also assert a “training claim,” premised on the allegation that Starbucks unlawfully denied tips to Baristas for customer service performed during their two-week training [69]*69period.1 Plaintiffs have adequately averred that the Court has diversity jurisdiction of this action pursuant to the Class Action Fairness Act of 2005. 28 U.S.C. § 1332(d).

Plaintiffs have moved for class certification and the parties have cross-moved for summary judgment pursuant to Rules 23 and 56 of the Federal Rules of Civil Procedure. The Court has considered thoroughly the parties’ submissions. For the following reasons, Defendant’s motion for summary judgment as a matter of law is granted in its entirety and every claim asserted by Plaintiffs, with the exception of plaintiff Baren-boim’s individual “training claim” (as to which Defendant concedes there is a genuine issue of material fact and has not moved for summary judgment), is hereby dismissed. Plaintiffs’ motion for class certification of the “training claim” is denied. The Court will not address Plaintiffs’ class certification motion with respect to the other claims in light of the Court’s ruling on Defendant’s summary judgment motion.

Background

The following material facts are undisputed unless otherwise indicated.2 Plaintiffs Barenboim and Ortiz are both New York residents and former employees of Starbucks. (Def. Response ¶ 1.) Starbucks is a Washington-based coffee and beverage company that operates approximately 400 stores in New York State. (Def. Response ¶3.) Barenboim worked as a Barista at a store located in Queens, New York, from October 3, 2006, to December ,13, 2006. (Def. 56.1 St. ¶ 1.) Ortiz worked as a Barista at a store located in Manhattan, New York, from February 4, 2008, to March 28, 2008. (Id. at ¶ 2.) As new Baristas, Barenboim and Ortiz were paid a starting wage of $8.75 per hour. (Id. at ¶ 3.) Starbucks stores are staffed by employees whom Starbucks refers to as “partners.” (Id. at ¶ 4.) Partners are divided into four categories: Baristas, Shift Supervisors, Assistant Store Managers, and Store Managers. (Id.) In New York, Starbucks employs approximately 5,250-5,600 Baristas, approximately 1,200 Shift Supervisors, approximately 400 Assistant Store Managers, and approximately 400 Store Managers. (Id. at ¶ 5.) On average, each store is staffed with approximately 17-18 Baristas, three Shift Supervisors, and one Assistant Store Manager. (Id. at ¶¶ 6-8.)

Baristas are entry-level, part-time hourly employees primarily responsible for customer service-related tasks such as working the cash register, making coffee drinks, and “[a]nticipat[ing] customer and store needs by constantly evaluating the environment and customers for cues.” (Id. at ¶¶ 9-11.) Each Barista must complete a two-week training program at the beginning of her employment, learning how to perform the various tasks associated with that position. (Id. at ¶ 12.) During the training period, new Bar-istas must complete four to five hours of technology training, which teaches Baristas how to use the store’s cash register. New Baristas must also work three or four “practice shifts,” during which time the Baristas work “on the floor” serving customers, taking drink orders, preparing drinks, processing customer payments, cleaning the store, and reading and performing assignments in a workbook. (Id. at ¶¶ 14-16.) At the end of the two-week training period, Baristas must take a practical exam to become “certified,” demonstrating their skills and knowledge of the tasks associated with their position. (Id. at ¶ 17.)

Shift Supervisors, like Baristas, are part-time hourly employees, who are non-exempt from applicable labor laws governing overtime pay. (Id. at ¶¶ 22, 29; Def. 56.1 St. ¶ 10.) Shift Supervisors spend a majority of their time performing the same duties as Baristas, but are also responsible for some additional tasks, including supervising and coordinating partners within the store, opening and elos-[70]*70ing the store, and depositing money into the safe. (Id.) However, Shift Supervisors do not have the authority to interview, hire, transfer, evaluate, promote, issue formal discipline, fire, or determine pay for any partners. (Def. Response ¶ 29; Def. 56.1 St. ¶ 11.) Shift Supervisors also do not prepare the work schedule, approve overtime work, or process payroll. (Id.) Shift Supervisors may be promoted from the ranks of Baristas upon approval of the Store Manager or District Manager, or hired directly into the position. (Def. Response ¶ 19.) Prior customer service experience in a retail or restaurant environment is necessary to work as a Shift Supervisor. (PI. 56.1 St. ¶ 21.) Shift Supervisors must also complete a training program at the beginning of their employment that consists of a workshop on “supervisory skills,” training on deployment,3 coaching,4 and “general information on the Shift Supervisor role.” (Def. Response ¶¶ 25-26.) Shift Supervisors are authorized to provide verbal corrective feedback to partners and relay their impressions of a partner’s performance to the Store Manager, but are not authorized to formally discipline partners. (Id. at ¶ 39.)

Store Managers are exempt, full-time salaried employees and have the authority to recruit, hire, promote, transfer, schedule, discipline, and terminate Baristas and Shift Supervisors. (Id. at ¶ 51; Def. 56.1 St. ¶¶ 5-6.) Store Managers are responsible for leading a team of store partners and are responsible for the operations of the store to which they are assigned. (Def. Response ¶ 54.) In some stores, a Store Manager is supported by an Assistant Store Manager, who is a full-time salaried employee. (Id. at ¶¶ 50, 53.) Although Store Managers and Assistant Store Managers may perform the same customer-service related duties performed by Baristas and Shift Supervisors on an as-needed basis, their primary duties are related to managing the store. (Id. at ¶ 56.) Approximately 70% of Assistant Store Managers are promoted internally from the ranks of Shift Supervisors. (Id. at ¶ 45.) Approximately 60-70% of Store Managers are promoted internally from the ranks of Assistant Store Managers. (Id. at ¶ 46.)

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Cite This Page — Counsel Stack

Bluebook (online)
264 F.R.D. 67, 2009 WL 4884163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-starbucks-employee-gratuity-litigation-nysd-2009.