SEATTLE (AP) — Starbucks Corp. plans to appeal a San Diego Superior
Court ruling last week that ordered the coffee chain to compensate
California baristas for tips they shared with shift supervisors.
"The
ruling would take away the right of shift supervisors to receive the
tips they earn for providing superior customer service," said Chief
Executive Howard Schultz, in a voicemail message to employees Wednesday
night. "I want you to know that we strongly believe that this ruling is
extremely unfair and beyond reason."
In the message, a transcript
of which was released by Starbucks, Schultz said the media "grossly
mischaracterized" the coffee chain's standard practice of allowing
shift supervisors to share in tips left for baristas.
"We would
never condone any type of behavior that would lead anyone to conclude
that we would take money from our people," he said.
Schultz vowed
that the company would appeal the ruling and defend itself against two
similar lawsuits filed this week in Minnesota and Massachusetts.
In a separate statement Thursday, Starbucks said 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, San Diego Superior Court Judge Patricia
Cowett 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 is set for May 1 before
Cowett on how the California tip money should be distributed.
Starbucks
responded in the statement that "shift supervisors are not managers and
have no managerial authority," and customers don't differentiate
between the supervisors and baristas when they tip.
Cowett also
issued an injunction preventing Starbucks' shift supervisors from
sharing in future tips, but Starbucks spokeswoman Valerie O'Neil said
it would not comply with that order while it appeals the court decision.
Shares of Starbucks fell 57 cents, or 3.2 percent, to close at $17.05.