Mar 28, 2008 6:28 pm US/Pacific
Starbucks To Baristas: No More Bucks From Us
SEATTLE (AP) ―
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Starbucks CEO Howard Schultz says the company has no plans to follow a court order to pay baristas for back tips.
CBS
Starbucks Chief Executive Howard Schultz says the coffee chain will not pay its California baristas back for tips they shared with shift supervisors in defiance of a San Diego Superior Court ruling last week.
Schultz calls the ruling "unfair" in a voicemail message sent to employees earlier this week.
The company has released a separate statement saying there is no money to be "refunded or returned from Starbucks."
The California lawsuit was filed in 2004, and was granted class-action status in 2006.
Last week, a San Diego Superior Court judge ordered Starbucks to pay baristas more than $100 million in back tips and interest, saying state law prohibits managers and supervisors from taking a cut from the tip jar.
A hearing to decide how to distribute the tip money is set for May 1st.
Starbucks has said that "shift supervisors are not managers and have no managerial authority."
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