When is a Tip Not a Tip?

The First Circuit Court of Appeals has made it absolutely clear that Supervisory Managers are not deserving of the tip pool as defined under the Tips Act, Mass. Gen. Laws ch. 149, § 152A.  Starbuck had created a policy of pooling gratuities that were later shared with wait staff which included shift supervisors.  However, the District Court determined and the First Circuit Court affirmed that the shift supervisors’ managerial requirement excluded them from the statute’s provisions and, therefore, should not have shared in the tip pool.  A tip is not a tip if your job description includes managerial duties anywhere within it.  The Court upheld the $14,000,000 judgment against Starbuck.  See the entire decision at: Matamoros v. Starbuck