Judge overturns $100 million Starbucks tips verdict

Judge overturns $100 million Starbucks tips verdict
Tags: Coffee / Specialty Beverages, Operations Management
June 2, 2009

LA Times: A California appeals court reversed a ruling Tuesday that had ordered the coffee giant to pay more than $100 million in restitution for allowing shift supervisors to share baristas' tips. The class-action lawsuit was brought on behalf of more than 100,000 current and former baristas in 2004 by former barista Jou Chau, who complained that shift supervisors were illegally getting a cut of employee tips.

An appeals court said the original decision was improperly based and that supervisors at "essentially perform the same job as baristas." However, attorneys for the baristas said they planned to appeal the decision to the California Supreme Court.

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