Starbucks Tips

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.

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.

• Topix.net: Starbucks Tips
• Google News: Starbucks Tips
• 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.'"
• Boston Globe: Starbucks Skimmed From Tips, Barista Says (March 26, 2008)
• MSNBC: Starbucks Must Pay $100 Million in Back Tips (March 21, 2008)
• FOXNews.com: Starbucks Ordered to Pay More Than $100 Million in Back Tips (March 21, 2008)
• San Diego Union Tribune: Starbucks Ruling: Pay $105 Million in Tips Case (March 21, 2008)
• Business Week: Starbucks Ordered to Pay Back Tips (March 21, 2008)
• The Independent: Change of tune at Starbucks as lattes lose their allure (March 21, 2008)
• Los Angeles Times: Tips ruling is made to order for baristas (March 21, 2008)
• San Diego Union Tribune: Ruling Makes Trial Likely in Starbucks Tipping Suit (June 23, 2006)

• Google Blog Search: Starbucks Tips

• Law Blog (WSJ): A $100 Million Payday for California Baristas? (March 21, 2008)

• Starbucks Gossip: California Judge Reviews Her Ruling in Starbucks Tips Case (June 16, 2006)

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