Mar 28, 2008 6:28 pm US/Pacific
Starbucks To Baristas: No More Bucks From Us
SEATTLE (AP) ―
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."
(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
