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Judge orders Starbucks to pay $106M for illegal tip sharing

SAN DIEGO A judge here has ordered Starbucks to pay more than $100 million to baristas in California after ruling that the coffeehouse giant had allowed shift supervisors to illegally share in tips.

Starbucks reportedly will have to pay $87 million plus interest to baristas at 1,400 California units, under the ruling made Thursday by San Diego Superior Court Judge Patricia Cowett. Plaintiffs' attorney David Lowe estimated that the total payout would be nearly $106 million.

The ruling covers more than 100,000 former and current baristas who have worked at Starbucks since late 2000, according to media reports.

California law prohibits employers from requiring restaurant servers to share tips with owners, managers or supervisors.

Starbucks said it planned to appeal the ruling. "Starbucks believes that our shift supervisors deserve their fair share of the tips that they receive from the tip jars in our California stores," the company said in a statement.

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