Starbucks planning to appeal new tip-sharing ruling ~ Awesome Custom!

Saturday, March 22, 2008

Starbucks planning to appeal new tip-sharing ruling

A San Diego Superior Court recently ruled that the world-famous coffee chain should aim to compensate California baristas for tips that they would otherwise share with shift supervisors. What the ruling does in a nutshell, according to Starbucks Corp. Chief Executive Howard Schultz, is prevent shift supervisors from receiving tips that they have rightfully earned for providing excellent customer service. Schultz has stated that they consider the ruling as “unfair and beyond reason” and has started making plans to appeal to the San Diego Superior Court.


Schultz has said that the media has “grossly mischaracterized” Starbucks’ standard practice of letting shit supervisors share in tips left for baristas, adding that the coffee chain company has never had any policies or promote any type of action that would allow them to take money from their own employees.


Starbucks Corp. has already entered the first stages in filing an appeal for the ruling while defending itself from two similar lawsuits that were filed in Minnesota and Massachusetts this week. Despite being on the hot seat this week, the California lawsuit against the coffee chain was filed as far back as 2004, and was only granted class-action status in 2006. It was only last week that San Diego Superior Court Judge Patricia Cowett has ordered Starbucks to pay baristas more than 100 million dollars in back tips and interest, with the reason being a state law that prevents managers and supervisors from taking a cut from the tip jar. Another hearing is set for May 1 to discuss how the California tip money should be distributed.

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