Starbucks ordered to pay out $100m in withheld tips

A court in California has awarded what may be the biggest tip in history.

Almost four years after a barista for the Starbucks coffee chain accused her employers of depriving her and other baristas of the tips they were meant to be receiving from customers, the court has ruled that the company must pay out more than $100m (£50m) in restitution.

In a brief ruling, just four paragraphs long, the court in San Diego concurred that the company incorrectly allowed shift managers and supervisors in its California outlets to dip into gratuities left by patrons when the money should have been distributed only to baristas making and dispensing food and drinks.

The judge told the company that it should pay back $87m in back tips plus interest of $19m.

The case only concerned operations in California, which is nonetheless the company's largest market in the United States, where it has 2,500 outlets.

The case began as little more than an annoyance for Starbucks when Jou Chou filed her complaint about shift supervisors pocketing part of tips owed to her. It became a much greater threat in 2006 when a judge granted it class action status, allowing as many as 100,000 former and current baristas to be represented.

Starbucks, which is attempting to counter a tumbling stock price and a slow-down in customer traffic, appealed against the ruling, calling it "fundamentally unfair and beyond all common sense and reason".

Far happier was Ms Chou. In a statement released by her lawyers, she said: "I feel vindicated. Tips really help those receiving the lowest wages. I think Starbucks should pay shift supervisors higher wages instead of taking money from the tip pool."

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

SAP BI CONSULTANT

£55000 - £65000 per annum + Benefits: Progressive Recruitment: SAP BI CONSULTA...

Infrastructure Manager - Southampton - Up to £45K

£35000 - £45000 per annum + 36 days holiday and more: Deerfoot IT Resources Li...

PHP Software Developer - Hertfordshire

£45000 per annum: Ashdown Group: PHP Software Developer - Hertfordshire An es...

Electrical Engineer

competitive: Progressive Recruitment: Long term contract role - Electrical Pro...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice