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Court orders Starbucks pay workers $106 million: lawyer

LOS ANGELES (Reuters) - A San Diego Superior Court Judge ordered coffee chain Starbucks <SBUX.O> to pay $87 million plus interest to workers who say that their tips unfairly had been shared with supervisors.
Posted : Fri, 21 Mar 2008 04:59:04 GMT
Author : Reuters
Category : US (Business)
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LOS ANGELES (Reuters) - 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.

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.

(Reporting by Peter Henderson; Editing by Gary Hill)


(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

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