A federal jury ruled this week that Starbucks discriminated against Shannon Phillips, a white manager. She was fired in the wake of backlash against the company for its treatment of black customers at a Philadelphia store five years ago.
Phillips received $25.6 million in damages following a six-day trial, her lawyers told ABC News.
The lawsuit’s resolution against one of the largest employers in the US shed light on the standards required to prove discrimination.
It also emphasized federal protections against biases that apply to all racial groups, regardless of historical marginalization, experts explained to ABC News.
It appears the jury was swayed, at least in part, by the argument that Starbucks dismissed Phillips as a means to control damage to its public image. The company had been under fire due to concerns about racial justice.
Former Philly Starbucks manager wins $25.6 million after being fired for being whitehttps://t.co/g5ArNeSFqR
— Jack Poso ???????? (@JackPosobiec) June 14, 2023
The outcome of this case may send ripples through corporate America, potentially influencing how businesses handle such issues in the future.
Experts suggest this decision could set a precedent, reinforcing that a company’s crisis management response should not trample on the rights of its employees.
Starbucks has yet to respond to ABC News’ request for comment.
However, in court documents, the company denied allegations of discrimination. Starbucks stated it disciplined Phillips for reasons that were “legitimate, non-discriminatory, and non-retaliatory.”
Back in 2018, a racially charged incident occurred at a Philadelphia-area Starbucks.
Two black men, Donte Robinson and Rashon Nelson, were arrested after a Starbucks employee accused them of trespassing because they hadn’t bought anything. The employee called 911, leading to their arrest.
Robinson and Nelson later reached a private settlement with Starbucks and the city of Philadelphia. The city agreed to pay each man $1 and set up a $200,000 fund for young entrepreneurs.
Shannon Phillips, a regional director who had been with Starbucks for almost 13 years, was fired less than a month after this incident. She claimed she wasn’t at the store on the day of the arrests and had no involvement in the events leading up to them.
In a lawsuit Phillips filed in 2019, she alleged her race was a key factor in her firing. A significant piece of evidence in her case was the testimony of a black district manager.
This manager claimed he believed race influenced Starbucks’ decision to fire Phillips and keep him on, Phillips’ lawyer told ABC News.