Los Angeles, CA: (Mar-21-08) A class action lawsuit was brought against coffee giant Starbucks, over the company's practices regarding tip sharing. The lawsuit claimed that money collected in tip jars was put into safes at each Starbucks and was handed out weekly to each employee based on the number of hours they worked. The plaintiffs stated that this was in violation of a state law that prohibits managers and supervisors from sharing in employee tips.
The suit was initially brought by former barista Jou Chou, who alleged in 2004 that shift supervisors, who also make coffee and serve customers, illegally got a cut of employee tips. The suit, said to affect over 100,000 current and former baristas who worked in California stores since October 2000, was given class action status in 2006. In a recent development in the case, as part of a settlement reached, Starbucks was ordered to pay California baristas more than $100 million.
Sources stated that the payout will include tips, which will be given back with interest. Some baristas stand to receive over $10,000. Company spokespersons stated that they are outraged at the court's decision and plan to appeal. Sources said that the court ruling and payout come as Starbucks has launched initiatives that sought to enhance the coffee experience, in the wake of weak US sales and a slumping stock price. [
