Court Reverses Starbucks' Tip-Sharing Ruling
Supervisors entitled to a piece to baristas' pie
Wednesday, Jun 3, 2009 | Updated 6:15 PM PDT
The appeals court ruling stems from a class-action lawsuit brought on behalf of more than 100,000 current and former baristas in California in 2004.
An appeals court in San Diego has reversed a ruling that ordered Starbucks to pay millions in restitution to baristas who had to share their tips with shift supervisors.
The court ruled that supervisors "essentially perform the same job as baristas" so they should get their fair share of collective tip jars.
The appeals court ruling stems from a class-action lawsuit brought on behalf of more than 100,000 current and former baristas in California in 2004.
A Superior Court judge ruled in their favor last year, awarding them $86 million in restitution plus about $20 million in interest. But the appeals court has reversed that.
Attorneys for the baristas say they plan to appeal to the state Supreme Court.
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