California Employment Law Update

Tag Archives: Tip Pooling

Card Club’s Tip-Pooling Arrangement Did Not Violate The Law

Avidor v. Sutter’s Place, Inc., 212 Cal. App. 4th 1439 (2013) Haim Avidor is the lead plaintiff in this putative class of current and former card dealers employed by Sutter’s Place, a cardroom/casino located in San Jose (“Bay 101”). Bay 101 required its dealers to contribute a set amount of the gratuities they received from … Continue Reading

Card Dealers Had No Standing To Challenge Mandatory Tip-Pooling Policy

Lu v. Hawaiian Gardens Casino, Inc., 2010 WL 3081272 (Cal. S. Ct. 2010) Louie Hung Kwei Lu, a card dealer at Hawaiian Gardens Casino, filed this class action challenging the casino’s tip-pooling policy that required dealers to set aside 15 to 20 percent of the tips they received, which the casino distributed to other employees … Continue Reading

Tip-Pooling Is Not Prohibited Under FLSA

Cumbie v. Woody Woo, Inc., 596 F.3d 577 (2010) Misty Cumbie worked as a waitress at the Vita Café (owned and operated by Woody Woo, Inc.). Woo required its servers to contribute their tips to a “tip pool” that was redistributed to all restaurant employees, including the kitchen staff (dishwashers and cooks). Cumbie filed this … Continue Reading

Court Overturns $86 Million Judgment Awarded In Favor Of Starbucks Baristas

Chau v. Starbucks Corp., 174 Cal. App. 4th 688 (2009) Jou Chau, a former Starbucks “barista,” brought a class action against the company, challenging Starbucks’ policy of permitting shift supervisors to share in tips that customers place in a collective tip box. Chau alleged the policy violated California’s Unfair Competition Law based on a violation … Continue Reading

Court Overturns $86 Million Judgment Awarded In Favor Of Starbucks Baristas

Chau v. Starbucks Corp., 174 Cal. App. 4th 688 (2009) Jou Chau, a former Starbucks “barista,” brought a class action against the company, challenging Starbucks’ policy of permitting shift supervisors to share in tips that customers place in a collective tip box. Chau alleged the policy violated California’s Unfair Competition Law based on a violation … Continue Reading

California Court of Appeal Reverses $105m Judgment In Starbucks Case and Clarifies Permissible Tip-Allocation Practices

The California Court of Appeal has issued an important decision that has significant implications for California employers that have tip-sharing arrangements for their employees. In Chau v. Starbucks Corp., 2009 WL 1522708 (Cal. Ct. App. Jun. 2, 2009), the court held that an employer can allow employees who have both supervisory and customer service duties … Continue Reading

Mandatory Tip Pool Was Legal But Shift Managers Could Not Share In Tips

Grodensky v. Artichoke Joe’s Casino, 171 Cal. App. 4th 1399 (2009) Card dealer Harvey Grodensky filed a putative class action challenging a mandatory tip-pooling policy that Artichoke Joe’s Casino had implemented for its dealers. The trial court determined (and the Court of Appeal affirmed) that the casino had not violated the minimum wage law by … Continue Reading

Restaurant’s Tip-Pooling Policy Violated California Law

Jameson v. Five Feet Restaurant, Inc., 107 Cal. App. 4th 138 (2003) Karla Jameson, a former server at Five Feet Restaurant, sued the restaurant for sexual harassment, retaliation, and unpaid wages, among other things, following her resignation in 1999. At trial, the jury found that although Jameson had not been sexually harassed, she had been … Continue Reading
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