Starbucks Corp. baristas objecting to the company withholding taxes from their pay based on estimated tips must litigate those issues in state court, the U.S. Court of Appeals for the Ninth Circuit said (Fredrickson v. Starbucks Corp., 2016 BL 367194, 9th Cir., No. 13-36067, 11/3/16).
The baristas contend Starbucks’ practice of estimating baristas’ tips at 50 cents an hour and then deducting taxes from their paychecks based on that estimate violates Oregon wage and hour laws as well as federal tax law.
A federal district court dismissed three former Starbucks employees’ class claims on behalf ...
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