Starbucks Obtains Reversal of $105 Million "Tip Sharing" Case
Just over a year ago, we reported about a $105 million California verdict in favor of Starbucks baristas who were required to pool their tips with supervisors. As you might expect, Starbucks appealed that decision. Yesterday, a California Court reversed the decision. Click here to read the decision in Chau v. Starbucks.
The 4th District Court of Appeal in San Diego ruled Tuesday that supervisors "essentially perform the same job as baristas," so they should get their fair share of the collective tips. (We wonder what that says about the supervisors' exempt status?) Attorneys for the baristas have indicated they will appeal to the California Supreme Court, and the World of Work will be watching, its $3.50 latte in hand.
Make Mine a "Venti": Starbucks Ordered to Pay Baristas $105 Million
A California Superior Court ordered Starbucks Corp. to pay $105 million in restitution to baristas who were required to pool their tips with supervisors. Chou v. Starbucks Corp., Cal. Super. Ct. No. GIC836925 (Mar. 19, 2008). The class action case was brought on behalf of all baristas who worked at any California Starbucks going back to October 8, 2000: an estimated 100,000 workers. That’s a little over $1,000 per barista—or approximately 420 tall lattes each.
