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September 8, 2008 5:16:08 AM CDT

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Starbucks Balks at Paying Back Barista Tips

Posted Mar 28, 08 9:41 AM CDT in Business 

(Newser) – 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.

"Contrary to some reports, Starbucks has not taken money, nor is there money to be refunded or returned," declared a spokeswoman. Starbucks' CEO yesterday voice-mailed employees saying the media had “grossly mischaracterized” the company’s role and called the ruling “unfair and beyond reason.” The judge found Starbucks violated state law because "agents" of the company—shift supervisors—were sharing tips with baristas, who have sole right to the money.

Source Seattle Post-Intelligencer

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    Starbucks Owes Baristas $100M in Tips 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. More »

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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Baristas participate in espresso training at Starbucks in New York, February 26, 2008.   (AP Photo)
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California  • lawsuit  • class action  • Howard Schultz  • barista  • tips  • labor code


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