Hospitality Law Blog : Hospitality Lawyer & Attorney : Davis Wright Tremaine Law Firm : Hotel & Restaurant Law, Employment Issues

On June 2, 2009, a California appellate court upheld Starbucks’ mandatory tip-sharing policy, saying that Starbucks does not have to pay $100 million in additional wages to its baristas.

Reversing a trial court judgment, the Court of Appeal held that Starbuck’s policy requiring that tips be divided between baristas and “shift supervisors” who work along side them is permissible under California Labor Code Section 351.

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On June 2, 2009, a California appellate court upheld Starbucks’ mandatory tip-sharing policy, saying that Starbucks does not have to pay $100 million in additional wages to its baristas.

Reversing a trial court judgment, the Court of Appeal held that Starbuck’s policy requiring that tips be divided between baristas and “shift supervisors” who work along side them is permissible under California Labor Code Section 351.

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It looks like a compromise may have been reached regarding the nation's menu labeling laws.

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In April, Washington state Governor Christine Gregoire signed HB 1441, which will revamp the state's beer distribution franchise laws. The new laws will be effective on July 26, 2009. 

Washington state beer franchise laws govern all agreements between wholesalers and "suppliers" (defined as in and out-of-state manufacturers of malt beverages, or their authorized representatives, that produce ≥ 200,000 barrels/year, and enter into distribution agreements with a Washington state wholesaler). So Washington state beer franchise laws will not apply to small breweries who produce less than 200,000 barrels of malt liquor per year (up from 50,000 barrels/year under current Washington state law). This is quite different from the beer franchise law system in most states, which impose very stringent franchise laws upon all beer distribution agreements, regardless of the size of the brewer.

How does this affect in and out-of-state brewers working with Washington state distributors?

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