Starbucks & Its Growing Union + Slip & Fall Cases + Antitrust Enforcement + Service Charges

In just four and a half months, Starbucks went from having zero union presence to employees voting to unionize at 32 stores around the country, with dozens of unionization elections occurring weekly. Throughout this process there has been growing tensions between the Starbucks corporation – which has made it clear that direct representation is preferable and that the unions have been disruptive — and union group SBWorkers United, which has accused its parent company of union-busting.

In the latest news, the National Labor Relations board is suing Starbucks for allegedly unfairly firing or retaliating against three union leaders from the company and is seeking injunctive relief and the reinstatement of these employees to the original positions with full pay.

Hospitality employers who utilize the "tip credit" under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in danger of being hit with a costly lawsuit if you use the tip credit, but you can’t help but see the federal and state governments attacking the concept itself. But could there be an easy alternative hiding in plain sight that could lighten your burden and take that target off your back? A recent federal appeals court decision in a case involving the celebrity restaurant owner known as Salt Bae shows how the service charge could be a possible solution – and this Insight will provide a six-step blueprint should you decide to walk this alternative path.