The situation has been brewing since October 2004, when one disgruntled barista filed a complaint arguing that personnel weren’t entitled to tips under California state law. In 2006, the case boiled over when a California judge granted it class-action status.
Advice: Although this case relates directly to California employers, it carries a lesson that’s applicable everywhere. Always check state laws before establishing compensation policies. Knowing federal laws—such as the Fair Labor Standards Act ( )—won’t always be enough. Workplaces in which employees commonly receive tips pose special challenges. Make sure your compensation system account...(register to read more)