Report: Starbucks sued for 'phantom wages'

Report: Starbucks sued for 'phantom wages'

Credit: PAUL J. RICHARDS/AFP/Getty Images)

Customers queue for coffee at Starbucks Coffee inside the Dulles International Airport

Print
Email
|

by KGW Staff

WCNC.com

Posted on November 21, 2013 at 11:34 AM

PORTLAND -- Starbucks is facing a federal class-action lawsuit, filed by three former Oregon workers who claim they made less than minimum wage, according to a newspaper report.

As first reported by KGW news partner The Oregonian, the suit claims Starbucks discourages employees from reporting tips and instead adds a "phantom” 50 cents per hour to their pay stubs.

According to the lawsuit, the practice violates the Fair Labor Standards Act.

A Starbucks spokeswoman told reporter Shane Dixon Kavanaugh the company fully complies with state and federal laws on how tips are taxed.

Print
Email
|