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Starbucks Has Paid $46 Million In Class Action Settlements To Employees
2008: Class Action Lawsuit Was Filed In Massachusetts Against Starbucks’ Policy Of Distributing Tips To Shift
Supervisors. According to the second amended complaint in Matamoros v. Starbucks Corporation, “This is a class action
challenging Starbucks Corporation’s policy of distributing to shift supervisors proceeds of tips left by customers. This practice
violates Massachusetts law. The above-named plaintiffs bring this action on behalf of themselves and all similarly situated
employees, namely all individuals who have worked as baristas at a Starbucks store in Massachusetts in the last six years.”
[Second Amended Complaint – United States District Court for the District of Massachusetts, 9/19/08]
Plaintiffs Alleged That Starbucks Policy Of Including Shift Supervisors In Tip Pool Violated Massachusetts Labor
Law. According to the second amended complaint in Matamoros v. Starbucks Corporation, “Plaintiffs allege that Starbucks’
policy of including shift supervisors in its tip pool violates the Massachusetts Tips Law, Mass. Gen. L. c. 149 § 152A, and also
renders the company liable under Massachusetts common law for breach of implied contract and interference with
advantageous relations, as well as under the common law doctrine of quantum meruit/unjust enrichment. In this action, the
named plaintiffs seek restitution for themselves and all other similarly situated employees who did not receive all tips to which
they are entitled to have received under the law.” [Second Amended Complaint – United States District Court for the District
of Massachusetts, 9/19/08]
2013: Matamoros v. Starbucks Was Settled With A Related Case, Black v. Starbucks Corporation. According to an
Order Approving Settlement, “Having reviewed and considered the parties’ proposed settlement agreement in the above-
captioned case, together with the related case of Black v. Starbucks Corporation, C.A. No. 12-10961, and having held a hearing
on the proposed settlement on August 16, 2013, and having received no objections to the settlement after sufficient
distribution of notice to class members, the Court hereby approves the settlement agreement because it is fair, reasonable, and
adequate, and hereby dismisses this action, as well as Black v. Starbucks Corporation, C.a. No. 12-10961, with prejudice.”
[Second Amended Complaint – United States District Court for the District of Massachusetts, 9/19/08]
Proposed Settlement In Matamoros And Black Cases Was $23,500,000. According to a Notice of Proposed Class Action
settlement, “This notice is to inform you of a proposed class action settlement in the cases of Matamoros v. Starbucks Corp.,
C.A. No. 08-CV-10772, and Black v. Starbucks Corp., C.A. No. 12-CV-10961, both pending in federal court in Massachusetts.
The proposed settlement class includes all individuals who have worked as baristas at any Starbucks store in Massachusetts
between March 25, 2005, and January 7, 2013. The settlement is conditioned upon court approval. […] The total amount of
the proposed settlement is $23,500,000. One-third of the total settlement will be used to pay attorneys’ fees and costs incurred
by the Plaintiffs’ attorneys for bringing and prosecuting the lawsuit. In addition, the three lead plaintiffs who initiated the
lawsuit will receive $25,000 each, and two additional plaintiffs who joined the litigation at a later point and assisted in the
recovery for the class will receive $15,000 each. The remainder of the settlement fund will be distributed to baristas who
worked in Massachusetts between March 25, 2005, and January 7, 2013.” [Notice of Proposed Class Action Settlement –
United States District Court for the District of Massachusetts, 4/15/13]
Case Was Moved To Federal Court Because It Involved An Interstate Dispute. According to the Notice of Removal
filed in U.S. District Court, “Defendant’s Notice of Removal is timely because it is filed within thirty days of service and
Defendant’s receipt of the complaint. This Court enjoys subject matter jurisdiction under 29 U.S.C. 1332 because this civil
action is between citizens of different states. Removal of this action to this Court is proper under 28 U.S.C. 1441 (a).” [Notice
of Removal – United States District Court for the Northern District of California, 7/27/01]
April 2002: Starbucks Reached Settlement In Carr And A Related Class Action Lawsuit (Shields v. Starbucks) For
$18 Million. According to a Starbucks press release, “Starbucks Corporation (Nasdaq:SBUX) announced today that it has
reached an agreement to settle two California class action lawsuits filed in 2001. The lawsuits, entitled Carr v. Starbucks
Corporation and Shields v. Starbucks Corp., challenged the status of Starbucks California store managers and assistant store
managers as exempt employees under California wage and hour laws. While Starbucks denies all liability in these cases, the
company has agreed to the settlement in order to resolve all of the plaintiffs' claims without engaging in protracted litigation.
The settlement fully resolves all claims brought by the plaintiffs in these California lawsuits. According to the settlement,
Starbucks will pay up to $18 million in claims to eligible class members, attorneys' fees and costs, and costs to a third-party
claims administrator, as well applicable employer payroll taxes.” [Starbucks via Business Wire, 4/19/02]
November 2013: Starbucks Reached $3 Million Settlement In Class Action Lawsuit Summer York v. Starbucks et al
Over Denial Of Meal Breaks And Producing Improper Wage Statements. According to a press release from the law firm
Capstone Law APC, “After nearly five years of arduous litigation, Capstone Law APC has obtained final approval of a $3.0
million class settlement for current and former Starbucks employees who were allegedly subjected to various wage violations,
including denial of meal breaks and receiving improper wage statements. The case is Summer York et al. v. Starbucks Corp.”
[Capstone Law APC via PRWeb, 11/8/13]
Case Was Filed in 2008 And As A Result, Starbucks Agreed To Overhaul Its Meal And Rest Break Policies.
According to a press release from the law firm Capstone Law APC, “On Monday, October 28th, the Hon. Judge Gary Feess
issued an order granting Capstone's motions for approval of the settlement. In addition, Judge Feess granted in full Capstone
Law's request for fees and costs in the amount of $1.9 million. The initial complaint was filed in 2008, and plaintiffs' counsel
prevailed despite sweeping changes in the law and in class action jurisprudence since that time. […] In addition to monetary
relief, Starbucks agreed to modify its meal and rest break policies in order to allow employees to take uninterrupted breaks as
required by law. These changes ‘will inure to the benefit of thousands of current and future Starbucks employees,’ Theriault
remarked.” [Capstone Law APC via PRWeb, 11/8/13]
Suit Alleged Starbucks Illegally Exempted Store Managers From Overtime Compensation. According to the
complaint filed in Hernandez v. Starbucks Coffee Company, “At all times pertinent to this Complaint, Defendant failed to
comply with 29 U.S.C. § 201-19 in that Plaintiff and those current and former employees similarly situated to Plaintiff, while
employed by Defendant under the title and auspices of ‘store manager’, and classified as exempt for purposes of overtime
compensation eligibility, performed hours of service for Defendant in excess of forty (40) during one or more workweeks, for
which Defendant failed to properly pay additional overtime premiums. In fact, Starbucks inappropriately and improperly
classifies its store managers as exempt employees. In the course of her employment with the Defendant, Plaintiff, and other
current and former employees similarly situated to her, worked the number of hours required of them, many times in excess of
forty (40) per work week, but were not properly paid overtime.” [Amended Complaint and Demand For Jury Trial – United
States District Court for the Southern District of Florida, 9/18/09]
Starbucks Agreed To $613,618 Settlement Fund And To Pay Plaintiffs $950,000 In Attorney’s Fees And Costs
($1,563,618 Settlement). According to the Settlement Agreement, “In Consideration for plaintiffs’ agreement to finally and
fully resolve, settle, release and discharge all claims for unpaid overtime wages udner the Fair Labor Stands Act, 29 U.S.C. 201,
et seq. and any other agreements made by plaintiffs herein, defendant agrees to pay plaintiffs a $613,618 settlement fund (‘the
settlement fund’) to be administered and distributed […] Defendant agrees to pay platiniffs’ counsel as full and complete
compensation for attorney’s fees, costs, and expenses the amount of $950,000, of which $900,000 represents plaintiffs’ counsel
reasonable attorney’s fees and $50,000 represents plaintiffs’ counsel’s reasonably incurred costs and expenses.” [Settlement
Agreement – Hernandez v. Starbucks Corp., United States District Court for the Southern District of Florida, 8/12/11]
Standards Cited: Design And Constructions Requirements For Exit Routes, General Requirements, And
Hazard Communication. According to the Occupational Safety and Health Administration (OSHA), Starbucks was
cited for “Design and constructions requirements for exit routes, general requirements, and hazard communication.
[OSHA Violation Items, Viewed 2/1/19]
Violated Rules On Eight Different OSHA Standards. According to the Occupational Safety and Health
Administration (OSHA), Starbucks was cited for violating rules on nine different OSHA standards. [OSHA Violation
Items, Viewed 2/1/19]
Standards Cited: Hazard Communication, Eye and Face Protection. According to the Occuprational Safety and
Health Administration (OSHA), Starbucks was cited for “Eye and face protection” and “hazard communication.”
[OSHA Violation Items, Viewed 2/1/19]
Starbucks Bought Teavana For $620 Million In 2012. According to Reuters, “Starbucks Corp (SBUX.O) said on
Wednesday it plans to buy tea store chain Teavana Holdings Inc TEA.N for $620 million, aiming to replicate the
success it has had with its namesake coffee shops. Teavana has about 300 shopping mall stores that sell loose-leaf,
exotic teas. In addition to opening stand-alone Teavana stores in the United States and abroad, Starbucks will add tea
bars that serve prepared drinks in existing Teavana stores, Starbucks Chief Executive Howard Schultz told Reuters.”
[Reuters, 11/14/12]
Teavana’s Tea Tumblers Were Recalled In 2013. According to a press release from the Consumer Product Safety
Commission, “The tumblers were recalled in May 2013, after Teavana had imported about 445,000 tumblers. The tumblers
were sold at Teavana stores and online at Teavana.com from August 2007 through May 2013, for about $15 to $33 for the
individual tumblers; about $40 for the Flourish Iced Tea Glasses Sets; and about $80 to $100 for the Imperial Blooming
Collection Tea Sets.” [Consumer Product Safety Commission, 6/1/16]
July 2009: The Starbucks Facility In Kent, Washington Incurred Another Penalty On The Same Day For $5,000.
According an EPA Civil Enforcement Case Report, a Starbucks Coffee Co. facility in Kent, Washington incurred a $5,000
penalty on July 17, 2009. [EPA Civil Enforcement Case Report WAPSCA0000530331078300040, Viewed 2/1/19]