The California Supreme Court ruled that the coffee giant Starbucks Corp. must pay its employees for off-the-clock work, setting a new standard for employers that pay by the hour in the state, The Wall Street Journal reported.
The court ruling requires employers to track any extra tasks their employees perform such as closing and locking stores.
This decision came after a lawsuit was filed against Starbucks by its employee who was required to clock out before completing tasks such as sending sales information to corporate headquarters, activating an alarm system and locking the door. This added an additional ten minutes to his work every day, resulting in an unpaid time of up to about $103 during his 17 months of employment, according to the court filings.
The case was dismissed by the federal court in 2014, but upon appeal, it was sent to California's supreme court. A Starbucks representative told the newspaper that the company was disappointed with the ruling.