Starbucks wage and tip $6M class action settlement

Starbucks Corp. has reached a $6 million settlement to resolve a class action lawsuit that claimed the company violated state law regarding tips and wages. 

The class includes Starbucks employees in Oregon who had deductions taken from their wages for taxes on imputed tips on or after Dec. 10, 2009. 

The lawsuit argued tax deductions were withheld from wages on imputed tips. Plaintiffs argued in the lawsuit that these tax withholdings were not required by law. 

The lawsuit claimed these withholdings led to employees being short-changed in their final wages when they left the company. The court certified two claims: the unlawful deductions claim and the failure to pay final wages claims. 

Starbucks is a multinational coffee chain, the world’s largest. Based in Seattle, Starbucks has more than 30,000 stores in 80 countries and generates nearly $30 billion in revenue a year. According to Forbes, the company employs 383,000 people. 

Starbucks has found itself the defendant in a number of lawsuits, including claims that the company’s, drinks needed more caffeine, its gummies were artificially flavored, its pesticide practices were inappropriate and its employees overcharged customers for breakfast sandwiches, among other product- and customer-related suits. Starbucks also faced class action lawsuits alleging age discrimination and over employee background checks.

But the concept of tip pooling has been under scrutiny since at least 2008, when baristas sued Starbucks for violating Massachusetts tips laws, and another lawsuit claimed the company added a “phantom wage” that caused some employees to make less than minimum wage. 

Starbucks denies it engaged in wrongful conduct or violated the law, as alleged in the most recent wage and tip class action, and settled to avoid the cost and risks of a trial.

Class members will receive a Starbucks settlement payment on the recent class action lawsuit unless they exclude themselves. 

The estimated settlement payment for each class member is $324.

The deadline for exclusion or objection is Aug. 1, 2022. By not excluding themselves and receiving the settlement payment, class members are giving up their right to sue and make the same claims later.

A final fairness hearing will take place Sept. 8, 2022.

No claim form is required for the Starbucks wage and tip settlement.

Who’s Eligible

Starbucks employees in Oregon who had deductions taken from their wages for taxes on imputed tips on or after 12/10/2009

Potential Award

$324

Proof of Purchase

No proof of purchase applicable

Exclusion or Objection Deadline

08/01/2022

Case Name

Fredrickson, et al. v. Starbucks Corporation, Case No. 1212-15734 in Circuit Court of Oregon for the County of Multnomah

Final Hearing

09/08/2022

Settlement Website

StarbucksOregonClassAction.com

Claims Administrator

Settlement Administrator
P.O. Box 3230
Portland OR 97208-3230
1-877-231-0436

Class Counsel

Jon M Egan
JON M EGAN PC

Defense Counsel

Christopher F McCracken
OGLETREE DEAKINS NASH SMOAK & STEWART PC