ALBANY, N.Y. (AP) -- New York's highest court says Starbucks' baristas must share their tips with shift supervisors, but assistant managers are left out in the cold.
The Court of Appeals on Wednesday found that shift supervisors who do much of the same work as the coffee servers get to share in the tips. The court also ruled the company can deny those tips to assistant managers.
The court backed Starbucks' policy of divvying up the tips, saying it's consistent with labor law.
Hospitality industry groups say the state court decision will be felt far beyond shops owned by Seattle-based Starbucks Corp. It will affect 42,000 New York businesses statewide and a quarter-million hospitality industry workers in New York City alone.