This Law Firm Publication by Jackson Lewis LLP discusses the New York Court of Appeals decision in In Re Starbucks, holding that Starbucks' tip splitting practices did not violate New York law. The court held that only employees with "meaningful authority" over subordinates may not participate in a tip splitting arrangement under New York Labor Law § 196-d. The court also held that New York law does not provide an affirmative right for eligible employees to participate in a tip pool, so, with some exceptions, employers may exclude otherwise eligible employees from the tip pool.