Starbucks Turns to Top California Court to Axe `Trifling' Claims
(Bloomberg) -- Starbucks Corp. has a message for workers suing over tiny amounts of unpaid labor: Forget about it.
The world's largest coffeehouse chain has been fighting for six years with a shift supervisor from one of its Burbank, California, stores over his demand to be compensated for the extra time it took to turn off the lights, activate the alarm and lock up after he clocked off for the night.
The case is before the state's highest court Tuesday to draw a line on when the stakes in a dispute are so small that it's not worth the fight. A loss for Starbucks could expose it and thousands of other employers to class-action lawsuits accusing them of cheating workers out of wages.
Backed by state and national business groups, Starbucks is relying on the maxim that “the law cares not for trifles” -- the basis of a rule courts use to filter out claims that are too minute to consider.
“There could be innumerable lawsuits over a few seconds of time," Starbucks said in a court filing last year. “The ‘de minimis' rule is one of common sense and everyday practicality."
Toxic Java? California Law Carries Big Fines, Little Evidence
The federal court of appeals in San Francisco, which considered the case two years ago, asked the California Supreme Court to weigh in, given that the state's courts have been reluctant to apply federal limitations on California's more employee-friendly labor provisions.
Starbucks has had mixed luck in California courts. In 2009, the company won a state appeals court ruling reversing a judge's order to pay $86 million in restitution for allowing supervisors to share in servers' tips. In March, Starbucks and dozens of other coffee brewers and retailers lost a long-running fight over a California law that requires them to tell consumers that coffee contains a chemical known to cause cancer.
To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net.
To contact the editors responsible for this story: Elizabeth Wollman at ewollman@bloomberg.net, Peter Blumberg
©2018 Bloomberg L.P.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.