Starbucks Resists Court Order To Pay $100 Million To Baristas – 04/01/08
Starbucks plans to appeal a ruling that ordered the company to pay California baristas for tips they shared with shift managers. Jesse Russell reports:
In a voicemail to employees last Wednesday Starbucks CEO Howard Schultz said the company believed the ruling by San Diego Superior Court to be unfair and that it would “take away the rights of shift supervisors to receive tips they earn for providing superior customer service.” The court ruled two weeks ago that Starbucks should pay baristas more than $100 million dollars in back tips that were shared with managers and supervisors. California law prevents supervisors from sharing money placed in tip jars. Starbucks contends that shift supervisors are not managerial staff and therefore do not fall under the law. Starbucks also said it would not comply with a court order to stop sharing future tips with shift supervisors. The company also plans to fight similar suits filed in Minnesota and Massachusetts.