Economics

A $100 Million Tip

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Yikes.

A Superior Court judge on Thursday ordered Starbucks to pay its California baristas more than $100 million in back tips that the coffee chain paid to shift supervisors. Saying baristas were entitled to $86 million in back tips plus interest, San Diego Superior Court Judge Patricia Cowett also issued an injunction preventing Starbucks' shift supervisors from sharing in future tips. Cowett said the practice was a violation of a state law prohibiting managers and supervisors from sharing in employee tips.

Will they be obligated to track down everyone who's ever worked at a Starbucks to give them their reimbursement? And will crappy baristas get the same amount in back tips as the good ones?