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Starbucks Owes Baristas $100M in Tips

Court says supervisors shouldn't be taking a cut out of tip jar

By Laurel Jorgensen, Newser Staff

Posted Mar 21, 2008 7:14 AM CDT

(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."

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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Starbucks Owes Baristas $100M in Tips

Court says supervisors shouldn't be taking a cut out of tip jar

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Starbucks Balks at Paying Back Barista Tips

Firm challenges court ruling, calls it 'unfair beyond reason'

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Total cost: $23.60

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As many as 50 locations could open by year's end

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Tall coffees to cost 10 more cents in much of US

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OTHER STORIES ON OUR RADAR

California • Starbucks • coffee • lawsuit • class action • labor code

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Starbucks Balks at Paying Back Barista Tips

Firm challenges court ruling, calls it 'unfair beyond reason'

Man Tries to Order Priciest Starbucks Drink Ever

Total cost: $23.60

Starbucks' New Frontier: India

As many as 50 locations could open by year's end

Starbucks Bans Blonde Jokes

Chain launches 'coffee for non-coffee drinkers'

Starbucks Raising Prices

Tall coffees to cost 10 more cents in much of US

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Newser By Users

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