Judge Rules On Starbucks Tips

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M50o93H7pQ09L8X1t49cHY01Z5j4TT91fGfr Judge Rules On Starbucks Tips
Published: Thu, March 20, 2008 - 10:14 pm
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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