Starbucks Lawsuit

Categories: News
    • Lawsuit filed in 2004
    • Starbucks appealed the ruling
    • Ordered to pay back tips, plus interest
    • Original plaintiff: Jou Chou
    • 2006: Granted class action status
  • Starbucks has been ordered to pay $105 million in tips to California baristas, after losing a class-action lawsuit. The court ruled that shift-supervisors illegally took a portion of employees tips, since there is a state law prohibiting managers and supervisors from sharing such tips. Starbucks company policy states all tips are to be divided among all workers, regardless of position. The ruling further states Starbucks must immediately change their tip policy to conform with California law.

    Starbucks is appealing both rulings, claiming shift supervisors have the same duties as baristas and should be rewarded for superior customer service. While the appeal is pending Starbucks has stated that they will not be refunding any tips to baristas and will not be changing their tip policy. Similar lawsuits have been filed in Massachusetts and Minnesota.

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