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July 19, 2008 2:12:58 AM CDT

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Starbucks Owes Baristas $100M in Tips

Posted Mar 21, 08 7:14 AM CDT in Business 

(Newser) – Starbucks will have to shell out more than $100 million to its baristas in California because they had to share the tip jar with supervisors, the Seattle Post-Intelligencer reports. A judge ruled that the coffee giant violated the state's labor code and ordered it to make amends to 120,000 low-wage workers over the last eight years. It's not clear how much each worker will get or whether the ruling will affect other states.

"You may be a big corporation and you may want to do it your way, but you still have to comply with the law and you can't subsidize your labor force," the judge wrote. The company called the ruling  “fundamentally unfair and beyond all common sense and reason.” The judge figured the ruling by estimating that baristas lost $1.71 an hour because of the policy. "It’s a lot of tips."

Source Seattle Post-Intelligencer

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    Mar 28, 08 9:41 AM CDT
    Starbucks Balks at Paying Back Barista Tips Starbucks is defying a California court ruling, arguing a judge has created a tempest in a tip jar, reports the Seattle Post-Intelligencer. The court ruled the coffee shop must pay nearly $100 million to California baristas forced to share tips with their supervisors. Similar suits have been filed in Minnesota and Massachusetts. Starbucks says it isn’t paying and is seeking an injunction against the ruling. More »

Starbucks, the world's largest gourmet coffee retailer, may have to distribute up to $106 million in back tips to California baristas following a judge's ruling.   (AP Photo/Elaine Thompson)
Baristas participate in espresso training at Starbucks in New York, February 26, 2008.   (AP Photo)
Starbucks Corp. Chairman and Chief Executive Howard Schultz speaks Wednesday, March 19, 2008 at Starbucks' annual shareholders meeting in Seattle.   (AP Photo/Ted S. Warren)
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California  • lawsuit  • Starbucks  • coffee  • class action  • labor code


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