Wage Law

Steve White, a former manager at two Starbucks stores in California, has filed a new class action against the Seattle coffee seller, alleging that supervisors were not paid overtime and were denied meal and rest breaks. The case was filed June 21, 2006, in U.S. District Court in San Francisco, seeking relief for several thousand managers who worked at California Starbucks stores within the past four years.

In 2002, Starbucks paid $18 million to settle an overtime lawsuit filed in California on behalf of store managers and assistant managers. After that settlement, Starbucks managers were converted to hourly wage earners. White's attorney, Scott Edward Cole of Oakland, has been quoted by various news sources suggesting that Starbucks Corporation's current compensation arrangement with managers is a "gimmick" or an "end run around California's wage laws." The lawsuit alleges off-the-clock work by supervisors, failure to provide meal and rest periods, and failure to provide accurate and complete wage statements.