Missouri has filed a lawsuit against Starbucks, accusing the coffee giant of using its commitment to diversity, equity, and inclusion (DEI) as a cover for discriminatory practices based on race, gender, and sexual orientation. The lawsuit was filed in federal court in St. Louis on Tuesday.
According to the lawsuit, Starbucks linked executive pay to meeting racial and gender-based hiring quotas. The state also claims the company singled out specific groups for extra training and job advancement, and applied a quota system to ensure its board of directors was diverse in terms of race and ethnicity.
Missouri Attorney General Andrew Bailey, a Republican, argues that these practices are unlawful and violate both federal and state civil rights laws. He also stated that consumers in Missouri are paying higher prices and experiencing longer wait times due to Starbucks prioritizing diversity over hiring the most qualified workers.
Starbucks, in response, denied the allegations. The company stated, “We disagree with the attorney general and these allegations are inaccurate. We are deeply committed to creating opportunity for every single one of our partners (employees). Our programs and benefits are open to everyone and lawful.”
The lawsuit challenges Starbucks’ DEI policies, which were introduced after the 2020 murder of George Floyd, an event that sparked nationwide protests and prompted many companies to reassess their employment practices. Missouri noted that Starbucks’ endorsement of quotas aligns with the support shown by Brian Niccol, Starbucks’ new CEO, for environmental, social, and governance (ESG) goals during his time leading Chipotle.
Starbucks currently employs approximately 211,000 people in the U.S. and 361,000 worldwide. In August 2023, a federal judge in Washington dismissed a separate shareholder lawsuit against Starbucks’ diversity policies, ruling that such issues should be decided by lawmakers and companies, not the courts.
Missouri’s lawsuit seeks to end what it calls unlawful discrimination and demands that affected employees be rehired and compensated. The case is being heard in the U.S. District Court for the Eastern District of Missouri.
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