Starbucks Trips Over Tips

Already shrinking Starbucks took another blow when Superior Court Judge Patricia Cowett sided with 100,000 current and former baristas that sued the coffee chain to reclaim over $85 million worth of tips that Starbucks had shared with it’s shift supervisors in CA locations over many years. Starbucks was ordered to pay back $87 million in tips and another $19 million in interest. Not an insignificant amount of money!

The law states fairly clearly that tips are not to be shared with supervisors and management. The employer is responsible for paying supervisors and management staff and tips are to be shared amongst mom-management staff. For more: Starbucks Trips Over Tips.