Friday, March 21, 2008

Starbucks Ordered to Pay Tips

It seems that Starbucks might get a $106 million dollar haircut if this verdict stands.
The lawsuit was filed in October 2004 by Jou Chou, a former Starbucks
barista in La Jolla, who complained shift supervisors were sharing in employee
tips.
The lawsuit gained ground in 2006 when it was granted class-action
status, allowing the suit to go forward for as many as 100,000 former and
current baristas in the coffee chain's California stores.

I guess Starbucks had it so that shift supervisors would dip into the tip jar instead of being paid a higher wage by Starbucks higher-ups. I wonder if other service industries are this way as well. It would suck for a waitress/waiter to have to share her tips with their supervisor because the restaurant they worked for wanted to keep their salary costs down.

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