Retail coffee chain Starbucks (SBUX) is being sued by its own employees over the company’s dress code.
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Starbucks workers in three states have banded together to take legal action against the coffee company, saying it violated the law when it changed its dress code but refused to reimburse employees who had to pay out of pocket for their new work clothes.
The employees, who are backed by the union that is trying to organize Starbucks’ staff, filed class-action lawsuits in Illinois, Colorado and California, saying the company has violated labor and workforce codes. For its part, Seattle-based Starbucks says it simplified the dress code to deliver a more consistent experience to customers.
New Look
The new dress code went into effect on May 12 and requires all workers in North America to wear a solid black shirt with short or long sleeves under their green aprons. Employees must also wear khaki, black, or blue denim bottoms without patterns or frayed hems. The dress code prohibits employees from having face tattoos or more than one facial piercing.
The dress code also requires workers to wear black, gray, dark blue, brown, tan or white shoes. Employees are suing Starbucks, claiming that they’ve had to spend their own money to buy clothing and footwear that is compliant with the new dress code. Some employees claim in the lawsuit that they’ve spent hundreds of dollars of their own money to fit the dress code requirements.
Is SBUX Stock a Buy?
The stock of Starbucks has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 14 Buy, seven Hold, and two Sell recommendations issued in the last three months. The average SBUX price target of $101.90 implies 22.73% upside from current levels.
