Starbucks Baristas Ordered to Share Tips

Starbucks baristas must share their tips with shift supervisors but not with assistant managers, New York's highest court said Wednesday in a ruling that could affect how employees are paid in tens of thousands of restaurants and coffee houses across the state.

The Court of Appeals found that shift supervisors do much of the same work as the coffee servers and therefore get to share in the tips. It also ruled that the company, which is based in Seattle, can deny those tips to assistant managers.

The ruling, responding to two lawsuits, backed Starbucks' policy of divvying up the tips, saying it's consistent with labor law.

Hospitality industry groups say the court's decision likely will affect policies at similar restaurants and coffee houses and will affect 42,000 businesses statewide and a quarter-million hospitality industry workers in New York City alone.

The New York State Restaurant Association, which represents more than 56,000 restaurants, bars and clubs, called the decision a win for all New York hospitality employers seeking clarity on how to compensate employees.