Starbucks Lawsuit

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.

• Topix.net: Starbucks Lawsuit
• Google News: Starbucks Lawsuit
• USA Today: Starbucks to ignore tip-sharing court ruling (March 28, 2008)
  • "'The ruling would take away the right of shift supervisors to receive the tips they earn for providing superior customer service,' said Chief Executive Howard Schultz, in a voicemail message to employees Wednesday night. 'I want you to know that we strongly believe that this ruling is extremely unfair and beyond reason.'"
• Forbes.com: Starbucks Tips Baristas $100 Million (March 21, 2008)
• Los Angeles Times: Starbucks tips ruling is made to order for baristas (March 21, 2008)
  • "In a San Diego County class-action lawsuit, a judge ordered the coffee giant to pay back tips, with interest, that the company had handed over to shift supervisors. Some baristas could receive more than $10,000, according to their attorney."
• San Siego Union-Tribune: Starbucks ruling: Pay $105 million in tips case (March 21, 2008)

• San Diego Union-Tribune: Starbucks may owe millions (March 12, 2008)