BARENBOIM v. STARBUCKS CORP.

No. 122.

21 N.Y.3d 460 (2013)

995 N.E.2d 153

972 N.Y.S.2d 191

2013 NY Slip Op 4754

JEANA BARENBOIM et al., Appellants, v. STARBUCKS CORPORATION, Respondent. EUGENE WINANS et al., Appellants, et al., Plaintiff, v. STARBUCKS CORPORATION, Respondent.

Court of Appeals of New York.

Decided June 26, 2013.


Attorney(s) appearing for the Case

Lichten & Liss-Riordan, P.C., Boston, Massachusetts ( Shannon Liss-Riordan of counsel), and Joseph, Herzfeld, Hester & Kirschenbaum LLP, New York City ( Daniel Maimon Kirschenbaum of counsel), for appellants in the first above-entitled action.

Outten & Golden LLP, New York City ( Adam T. Klein , Lewis M. Steel and Molly A. Brooks of counsel), and Outten & Golden LLP, Chicago, Illinois ( Paul W. Mollica of counsel), for appellants in the second above-entitled action.

Akin Gump Strauss Hauer & Feld LLP, Los Angeles, California ( Rex S. Heinke , Gregory W. Knopp , Katharine Galston and L. Rachel Lerman , of the California bar, admitted pro hac vice, of counsel), Akin Gump Strauss Hauer & Feld LLP, New York City ( Samidh Guha of counsel), and Akin Gump Strauss Hauer & Feld LLP, Washington, D.C. ( Daniel L. Nash and Nathan Oleson , of the District of Columbia bar, admitted pro hac vice, of counsel), for respondent in the first and second above-entitled actions.

Eric T. Schneiderman , Attorney General, New York City ( Steven C. Wu , Barbara D. Underwood and Julie M. Sheridan of counsel), for New York State Department of Labor, amicus curiae in the first and second above-entitled actions.

Jackson Lewis LLP, New York City ( Jeffrey W. Brecher , Felice B. Ekelman , Noel P. Tripp and Tara Touloumis of counsel), for New York State Restaurant Association, Inc., amicus curiae in the first and second above-entitled actions.

Gladstein, Reif & Meginniss LLP, New York City ( James Reif of counsel), and Harrison, Harrison & Associates, Ltd. ( David Harrison of counsel) for UNITE HERE! Local 100 and others, amici curiae in the first and second above-entitled actions.

Fox Rothschild LLP, New York City ( Carolyn D. Richmond , Eli Z. Freedberg and Rosemary P. Joyce of counsel), for New York City Hospitality Alliance, amicus curiae in the first and second above-entitled actions.


OPINION OF THE COURT

GRAFFEO, J.

The United States Court of Appeals for the Second Circuit has posed two questions regarding the legality of Starbucks Corporation's tip-splitting policy under Labor Law § 196-d.

I.

Defendant Starbucks Corporation is a Washington-based coffeehouse company that operates hundreds of outlets in New York State. In each store, Starbucks employs four categories...

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