Starbucks must repay $100 million for gratuities

Starbucks must repay $100 million for gratuities shared with supervisors, a San Diego judge rules.

By Roger Vincent and Andrea Chang, Los Angeles Times Staff Writers
March 21, 2008

Starbucks got caught with its hand in the tip jar and was ordered Thursday to pay California baristas more than $100 million.

In a San Diego County class-action lawsuit, a judge ordered the coffee giant to pay back tips, with interest, that the company had handed over to shift supervisors. Some baristas could receive more than $10,000, according to their attorney.

The ruling was met with cheers by California baristas. "I'm stoked," said Leekeisha Smith, who makes coffee drinks in the Starbucks at Sunset Boulevard and La Brea Avenue in Los Angeles.

"Wow. I'm just shocked that we'll get that [money] back." Smith, 23, said she found out about the lawsuit from a letter sent to employees.

Starbucks Corp. said it was outraged and vowed to appeal. In a statement, the company said the decision "is not only contrary to law, it is fundamentally unfair and beyond all common sense and reason."

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