Case Study: Falcon V. Starbucks

Case Study of

James Falcon, on Behalf of Himself and Others Similarly Situation, Plantiffs,

v.

Starbucks Corporation and Does 1 through 100, Defendants.

Liberty University Online

Author Note

School of Business, Liberty University Online

Correspondence concerning this case study should be addressed to , School of Business, Liberty University Online.

In the case of Falcon et al. v. Starbucks Corporation, various Starbucks management figures face serious allegations that their business practices, more specifically those relating to the compensation of assistant store managers (ASMs) for the hours they worked, were not compliant with the regulations set forth in the Fair Labor Standards Act (FLSA). These allegations were brought by assistant store managers, who had recently had their job responsibilities rewritten, as well as their employment status changed from exempt employees to nonexempt employees and had not received pay for the overtime hours they had worked (Falcon et al.). Not only was Starbucks Corporation violating these federal regulations, but they were also violating regulations set forth for Christians by the Word of God. Throughout the Bible, there are mentions that workers should be compensated for the time they work. Although the thought of allowing assistant store managers to receive compensation for the extra hours they were already putting in may have seemed like a novel idea, the execution on Starbucks’ end fell short of flawless.

In the case of Falcon et al v. Starbucks Corporation, a collective of assistant store managers are accusing Starbucks Corporation of requiring ASMs to work off the clock to complete their daily tasks, which resulted in the ASMs not receiving compensation for the hours they had worked. As Starbucks Corporation should have been aware, this is a direct violation of the regulations regarding hours worked and overtime compensation set forth by the FLSA. The FLSA defines hours worked as time required...