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WE TIP OUR HAT

In a class-action diversity case, the United States Court of Appeals for the First Circuit thought that a Massachusetts statute (which prohibited "management or supervision" from sharing tip money left for a company's "wait staff" employees) was pretty unequivocal.

Although Starbucks argued its "shift supervisors" were "employees," since those individuals had been given "managerial responsibilities"--like opening and closing the stores, handling and accounting for cash, and monitoring breaks--and weren't allowed to share gratuities under that particular state's law, the First Circuit ultimately concluded that some $14.1 million had to be redistributed.

They sure tipped the scales there.

To view a copy of the First Circuit's decision, please use this link: Matamoros v. Starbucks Corporation

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