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Court Orders Starbucks to Pay Workers $106 Million

Reuters
Thursday, 20 Mar 2008 | 11:52 PM ET

A San Diego Superior Court Judge ordered coffee chain Starbucks to pay $87 million plus interest to workers who say that their tips unfairly had been shared with supervisors.

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David Lowe, lawyer for the workers, on Thursday said the total including interest amounted to some $106 million.

Starbucks in a statement said it would appeal the judgment, which also required that Starbucks cease letting supervisors share tips.

The ruling by Judge Patricia Cowett covers more than 100,000 current and former workers, known as baristas, who worked for Starbucks in California since late 2000, said Lowe, of firm of Rudy, Exelrod & Zieff.

"Plaintiff class (baristas during the class period) are entitled to restitution against Starbucks in an amount equal to the amount paid out of pooled tips to shift supervisors during the class period," Cowett wrote in a decision dated March 19.

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