SavvySugar

Starbucks Does Not Owe Its Baristas $105 Million - For Now

SavvySugar — Thu, 04 Jun 2009 12:00:42 -0700

More than a year after a California court ordered Starbucks to pay its baristas $105 million in back tips, the 4th District Court of Appeal has reversed the ruling. It all started when former barista Jou Chau filed a class-action lawsuit on behalf of the 100,000 current and former baristas in the state of California, arguing that Starbucks was acting unlawfully by permitting shift supervisors to share tips.

The appeals court concluded that Starbucks supervisors should receive their fair share of tips because they "essentially perform the same job as baristas." The baristas are taking the issue to the top and plan to submit an appeal to the California Supreme Court. David Lowe, the baristas' lawyer, brought the argument full circle and said, "Up to this point, every court that has addressed this issue has found that an employer cannot pay supervisors from a tip pool. This is the first case that goes in a different direction."

When the initial ruling was announced last March, 62 percent of you agreed that Starbucks was disobeying the law and owed its baristas for the tips they shared with supervisors. For now, Starbucks has been declared the winner, but we'll have to wait and see what happens with the baristas' appeal.

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News Flash: Questionable Charges on US Credit Cards

SavvySugar — Tue, 13 Jan 2009 04:30:40 -0800

Have you ever heard of a NY based company called Adele Services? No? That's because it doesn't exist, but credit card holders across the country became familiar with the phantom company when it recently appeared on their statements. Consumers from around the country picked up on the $0.25 cent charge with concern that their credit identity had been compromised.

The Better Business Bureau hypothesizes that the scam is meant to build a large sum from many small charges. While $0.25 might not cause you to worry, you may wish to report a false charge out of principal. Scan your statement for the suspicious company and file a dispute with your credit card company.

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Mortgage Aid Program to Bring Hope for Homeowners

SavvySugar — Thu, 02 Oct 2008 04:00:13 -0700

Much of the banking drama from the last few weeks can be traced back to bad mortgage bets, making us wish that homeowners were never approved for loans they never could have afforded. Yesterday, a government drafted mortgage aid program launched into action that aims to contain the mortgage crisis from causing more trouble. The $300 billion, three-year initiative aims to allow about 400,000 homeowners to exchange their existing mortgages for more affordable ones, therefore staving off potential foreclosures.

Lenders must first decide if they want to participate in the program as they'd be taking losses on the existing loans, and it's not clear if the so-called "Hope for Homeowners" program will go over well in the industry. A report by the State Foreclosure Prevention Working Group is critical of the initiative and found that in the past year, about one in five loans that were adjusted to give more favorable lending terms became delinquent again. What do you think of the mortgage aid program? Are you hopeful that it will prevent more foreclosures?

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News Flash: Money Honeys, Testosterone, and the FDIC

SavvySugar — Wed, 01 Oct 2008 04:00:40 -0700

"Money Honey" Maria Bartiromo and "Street Sweetie" Erin Burnett are profiled in a compelling piece describing their impact on business news and the journey to the top of their field. - Vanity Fair
The FDIC has asked Congress for permission to raise the limit on the amount of money it insures for individual bank accounts from $100,000. They believe an increase could hold off customers from running bank deposits. - CNN Money
New research suggests high levels of testosterone are correlated with riskier financial behavior. Could it have played a role in causing the financial crisis? - Scientific American

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News Flash: Credit Card Reform Bill Gets Nod From the House

SavvySugar — Wed, 24 Sep 2008 04:00:53 -0700

The House passed a bill that would limit surprise interest-rate increases and fees for credit-card users, but it still faces Senate approval and won't be reviewed until the bailout plan has been finalized. - Reuters
Is your head spinning from all of the recent economic news? Here are 15 things you should know about what's gone down. - Kiplinger
How the really wealthy cut back: postponed plastic surgery, cheaper help, and less pretentious parties. - The Wall Street Journal

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News Flash: Money Is on Everybody's Mind

SavvySugar — Thu, 18 Sep 2008 04:00:21 -0700

Forbes released its 27th list of the Forbes 400 ranking the 400 richest Americans - you'll need at least $1.3 billion to join this club. Of course, Bill Gates made the list. - Forbes
Networking in a time of need: University of Chicago's Graduate School of Business called its alumni that were Lehman employees just one day after the bank filed for bankruptcy. - The Wall Street Journal
The federal government is considering forming a new agency to handle the mortgage-related assets that have crippled Wall Street. - The New York Times

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News Flash: Small Companies Hiring While Big Ones Are Firing

SavvySugar — Fri, 12 Sep 2008 04:00:18 -0700

From a hiring standpoint, small companies are exhibiting more stability compared to larger ones and you may consider pursuing positions at these less sizable businesses if you're looking for a job any time soon. In August, unemployment reached its highest point in five years and more large companies instituted hiring freezes.

Small companies aren't exactly ramping up their recruitment efforts as hiring has remained flat, but it's a more hopeful job market compared to some large companies showing signs of contraction in their workforces. Even better, there is some optimism that small businesses may be expanding the number of new hires in the next few months.

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News Flash: Make a Late Payment, Get a Call From the Bank

SavvySugar — Thu, 11 Sep 2008 04:00:32 -0700

Looking for a job? According to The Wall Street Journal, many major banks in the US are bulking up their collections departments' personnel and emphasizing their efforts to contact late payers more immediately than before. If you go on vacation and forget to pay your credit card bill on time, you may return home to not only a late fee but a message from the bank issuer.

Credit card carriers are cracking down and calling delinquent payers as soon as one day after their bill was due. Pay your bill as soon as you realize it's past due, because your bank may call frequently with friendly reminders that you owe money. The Federal Reserve's most recent calculations show that Americans are carrying $969.9 billion in revolving debt, and consumers are leaning on credit cards more as unemployment goes up.

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News Flash: Workers Are Warming Up to Female Bosses

SavvySugar — Fri, 05 Sep 2008 04:00:56 -0700

Women were given higher scores than men in five of eight categories in a recent survey rating men and women on various leadership traits. - ABC News
If you log in a lot of driving miles you may consider a gas rewards card to save money, but do your homework before choosing a card. - CNN
Back-to-school shopping was kind to Wal-Mart this year. Abercrombie and Fitch? Not so much. - Financial Times
Working from home is a sign of the times; here are some suggestions on how to earn money without leaving your house. - The Huffington Post

News Flash: Southwest Airlines Is Not Invincible

SavvySugar — Wed, 27 Aug 2008 04:00:37 -0700

Yes, it's true, America's friendliest airline is reporting it is not as financially sound as previously stated. Southwest has announced it will cut 200 flights in 2009, representing about six percent of its regular daily flight schedule. The reduced schedule won't stop the airline from flying out of the 60 airports it currently uses, but the cuts will reduce frequency of flights on most routes.

The good news? Southwest is adding roundtrips between Phoenix and Burbank, Las Vegas and Orange County, and Baltimore and Orlando. Hopefully the airline won't feel a tougher pinch in 2009 and have to sacrifice the no-fee flying that's made it a favorite.

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