Second Circuit Permits Low Level Supervisors To Participate In Tip Sharing

On November 21, 2013, in Barenboim v. Starbucks Corp., No. 10-4912 (2d. Cir. Nov. 21, 2013), the United States Court of Appeals for the Second Circuit upheld the practice of requiring rank in file employees to share their tips with low level supervisors. The Court's decision, which was widely expected in this closely-followed case, should bring some relief to New York employers in the hospitality industry.

In Barenboim, a class of baristas who worked at Starbucks locations throughout New York alleged that Starbucks' practice of requiring baristas to share their tips with employees classified as "shift supervisors" violated New York Labor Law § 196-d (Section 196-d). Both baristas and shift supervisors are hourly wage employees who have a primary responsibility of serving food and beverages to customers.  However, shift supervisors – as their job title implies – also have some supervisory responsibilities. They assign baristas to particular positions during their