Florida AG sues Starbucks over alleged discriminatory hiring, promotion practices against nonminorities

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Florida AG sues Starbucks over alleged discriminatory DEI practices

Florida Attorney General James Uthmeirer filed a lawsuit Tuesday accusing Starbucks of violating state civil rights laws by using its diversity, equity, and inclusion initiatives to make employment decisions based on race.

Florida Attorney General James Uthmeier is suing Starbucks for conducting practices that he says are excluding nonminorities. 

In a Dec. 10 complaint, Uthmeier accused the coffee giant of implementing and enforcing race-based quotas for hiring and advancement. The attorney general's office says these quotas violate Florida's Civil Rights Act. 

What we know:

In a complaint filed on Dec. 10, the office of the Attorney General claimed that for the past five years – by establishing racial quotas and hiring goals – Starbucks has excluded or disfavored nonminorities. The complaint also said Starbucks discriminates against "disfavavored" races – defined as white, Asian, and multiracial people.

This lawsuit comes after an executive order from President Trump ending all DEI programs in January. 

The complaint alleges that Starbucks paid employees different wages because of their race and tied executive compensation in race-based mentorship programs. These programs were "open only to persons of certain favored races and race-based retention rates of employees," the complaint said. 

Uthmeier's office said these practices excluded people from networking and mentorship opportunities. 

"Florida residents have contacted the Attorney General to report that the Defendant’s race-based practices caused them humiliation, reduced their compensation, exposed them to a hostile work environment, or inflicted on them other harms because of their race," the complaint said. 

These residents also reported that Starbucks paid them and their white coworkers lower wages because of their race. 

The AG's office claims these practices cause substantial harm to Florida's economy. 

The backstory:

This isn't the first time Starbucks has faced litigation for "disfavoring nonminority employees," the complaint said. 

FOX Business reported in 2023 that a Starbucks manager in Philadelphia won a $25.6 million lawsuit after she argued she was fired for being white. Shannon Phillips sued Starbucks in 2019 over allegations of racial bias and discrimination. Phillips had worked for the company for 13 years. 

Attorney General: Starbucks is in violation of the Florida Civil Rights Act

The Attorney General claims that through these practices, Starbucks is in violation of the Florida Civil Rights Act of 1992. The Civil Rights Act prevents employers from discriminating against a person in compensation, terms, conditions and privileges of employment because of race. 

"Defendant’s racist policies and practices have caused financial, moral, and emotional harm to Florida residents," the complaint said. 

Uthmeier claims that Starbucks admitted– on its website and in statements – that the company: 

  • Hires applicants based on race
  • Pays employees different wages based on race or ethnicity
  • Ties executive compensation to participation in mentorship programs only open to people of "certain favored races"
  • Excludes people of certain races from networking and mentorship opportunities
  • The company spends $1.5 billion annually working with diverse suppliers
  • Maintains a diversity quota for its board of directors

Seeking damages per violation

According to the complaint, the AG's office is commencing a civil action – seeking compensation for damages, injunctive relief and civil penalties up to $10,000 per violation. 

The Attorney General wants civil penalties of $10,000 for each instance of racial discrimination that Starbucks is committing or has committed against a Florida resident. The AG currently estimates this amounts to at least in the tens of millions based on the number of Starbucks locations in Florida. 

Starbucks responds

In a statement to FOX 35, a Starbuck's spokesperson said: 

"We disagree. 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. Our hiring practices are inclusive, fair and competitive, and designed to ensure the strongest candidate for every job, every time."

In a description of Starbucks' culture on its website, the company defines itself as a place of belonging. 

"We recognize and appreciate everyone for who they are," the website says. "We show up every day when we actively listen with warmth and transparency to welcome each other and the communities we serve. The way we hire, develop and advance our employees is fundamental to our commitment to create a place of belonging."

Who is Starbucks? 

Starbucks opened in Seattle in 1971 and has since opened cafés worldwide. 

According to the complaint, Starbucks runs and operates 394 stores in Florida – employing 381,000 employees nationwide and thousands in Florida. 

The complaint said Starbucks implements its policies and practices nationwide – including in Highlands County, Florida.

The Source: Information in this story was sourced from a complaint filed by the Florida Office of the Attorney General on Dec. 10 and Starbucks. 

Florida News