Starbucks' Class Action Lawsuits
- Laurel Overton and Sean Pendlebury filed suit against Starbucks in 2004 on behalf of themselves and other Starbucks employees in the Southern District of Florida. Overton alleged that Starbucks should have paid her and other store managers overtime when they worked more than 40 hours per week. Plaintiffs claimed that Starbucks managers were "glorified baristas" who spent more time making coffee, working the register and cleaning up than they did in managerial duties such as hiring and interviewing. The case settled in 2008 for an undisclosed amount.
- Olivia Shields and James Carr filed suit against Starbucks in 2001 on behalf of themselves and other Starbucks employees in the Central District of California. Plaintiffs alleged that, although they were store managers, they should have received overtime pay when they worked more than 40 hours per week. Under California labor laws, a company can refuse to pay overtime to a managerial employee who engages in managerial duties at least half-time. Starbucks denied liability in the case but paid $18 million to settle the two lawsuits.
- Roya Koike and Adam Odnert filed suit against Starbucks in 2006 on behalf of themselves and other Starbucks employees who were not paid for time worked "off the clock." The court dismissed the case, finding that the plaintiffs tried to conceal their extra hours, and there was insufficient evidence that Starbucks knew the plaintiff worked extra hours. The court did not hold Starbucks responsible for paying Koike and Odnert for hours that it did not know they worked. Plaintiffs appealed the dismissal, and as of March 2011, the appeal is still pending.
- Jou Chou, a former La Jolla, California, barista, filed suit against Starbucks in 2004, alleging that shift supervisors shared in employee tips. The case was tried before a jury in 2008, and plaintiffs were awarded $100 million in back tips and interest. Starbucks appealed the decision.
- In addition to these lawsuits, other class action plaintiffs have filed suit against the coffee giant. In 2008, Starbucks was ordered to pay an undisclosed amount to Houston, Texas, assistant managers whom the company allegedly forced to work off the clock without pay. Starbucks also settled a California class action suit by agreeing to pay up to $3 million to reimburse employees for job-related mileage expenses.