Starbucks was ordered to pay $106 million in back tips on Thursday after a California court ruled that it was unfair for the company's baristas to share their tips with shift supervisors.
San Diego Superior Court Judge Patricia Cowett also issued an injunction barring shift supervisors from sharing in employee tips in the future.
Starbucks called the decision fundamentally unfair. It vowed to vigorously appeal the prohibition and the damages award.
The case was brought forward in October 2004 by college student Jou Chou, who had worked at a San Diego Starbucks between 2003 and 2004. The case was given class-action status in 2006. It affects up to 100,000 former and current baristas in California.
This case was filed by a single former barista and, despite Starbucks request, the interests of the shift supervisors were not represented in this litigation, the company said in a statement.
The award includes $87 million in back tips and interest of $19 million.