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Starbucks Tips

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  • A Superior court judge in California issued a decision on March 20, 2008, requiring Starbucks to pay $86 million, plus interest, to baristas in California. Starbucks' practice had been to divide tips among all employees working a shift, but California law prohibits supervisors and managers from sharing in tip pools. The judge also issued an injunction requiring Starbucks to end the sharing of tips with supervisors immediately. Starbucks is appealing both decisions, maintaining that shift supervisors perform the same duties as baristas and do not perform managerial duties. Starbucks has also stated that during their appeal they will ignore the ruling to refund tip money and their policy will remain the same. Some legal experts have indicated that this is the largest tip-sharing case in California history. On March 26, 2008, a former barista in Massachusetts announced that he would filing a suit as well. Another former barista in Minnesota has also filed a similar lawsuit.
  • Fast Facts:

    1. 120,000 current and former baristas will benefit
    2. Suit filed in 2004
    3. Covers tips paid out from October 2000 to February 2008.

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