Get instant
small business insurance quotes


Home > Employment Practices Liability Insurance > News
 

Wage and hour class-action lawsuit filed against Starbucks

Published:

A class-action lawsuit was recently filed against Starbucks by a San Jose-based law firm specializing in employment law.

The class-action suit alleges that the popular coffeehouse "systematically failed to record and pay [Barista's] for minimum wages, wages for all hours worked and overtime wages." The last failure is in direct violation of the state's overtime laws.

The lawsuit specifically mentions the company's failure to pay Barista's for their compensable training time, during which they reviewed and memorized menus and preparation materials. By law, employers must compensate their employees for any time worked past eight hours in a single workday or 40 hours in a workweek. Furthermore, companies must pay hourly employees for all mandatory training time. In addition, if employees are required to take a quiz off the clock, the company must still pay them for the amount of time it takes them to finish the quiz or other training activity.

The case highlights the importance for companies to follow fair and legal business practices and employment processes. Starbucks is one of several large companies being accused of such practices, which include Walmart and PR-firm Rogers & Cowan. Using legal practices can avoid expensive lawsuits involving professional liability. 

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.