Starbucks Ordered To Pay Back Tips

By: AP Email
By: AP Email

San Diego (AP) A San Diego judge has ordered Starbucks to pay its California baristas more than 100 million dollars to cover back tips that the coffee giant had paid to supervisors.

An injunction also prevents the supervisors from sharing in future tips. The judge says the practice violates a state law that prohibits managers and supervisors from sharing in employee tips.

A Starbucks spokeman calls the ruling fundamentally unfair and beyond all common sense and reason. The company plans to appeal.

Starbucks employs more than 135,000 baristas in the U.S.

The California judgment comes as Starbucks struggles to revive its business in the U.S. store traffic has slipped amid a sagging economy, rising energy and dairy costs and growing competition from cheaper rivals.

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