Missouri Attorney General Andrew Bailey has sued Starbucks over its diversity policies, saying the company made hiring and promotion decisions based on race in violation of state and federal anti-discrimination laws.
The complaint filed Tuesday said that the coffeehouse giant launched a diversity, equity and inclusion program in 2020 to retain and promote BIPOC [Black, Indigenous and People of Color] employees, including setting a goal of at least 30% minority representation at corporate levels and 40% at retail levels by 2025.
“Starbucks has decided to require outright race- and sex-based discrimination in hiring via quotas, segregate employees on unlawful bases, and single out preferred groups for additional training and employment benefits,” said the 59-page lawsuit.
Starting in 2021, the company also tied executive compensation to meeting its diversity goals, according to the complaint filed in U.S. District Court for the Eastern District of Missouri.
“As Attorney General, I have a moral and legal obligation to protect Missourians from a company that actively engages in systemic race and sex discrimination,” said Mr. Bailey in a statement. “Racism has no place in Missouri. We’re filing suit to halt this blatant violation of the Missouri Human Rights Act in its tracks.”
A Starbucks spokesperson disputed the lawsuit’s allegations, insisting that the firm’s benefits are available to all its employees, known as partners.
“We disagree with the Attorney General, and these allegations are inaccurate,” the spokesperson told media outlets. “We are deeply committed to creating opportunity for every single one of our partners. Our programs and benefits are open to everyone and lawful.”
The lawsuit comes with DEI on the chopping block as U.S. companies scale back their diversity programs, a list that includes Starbucks. Last year, shareholders voted to remove diversity and environmental sustainability goals from executive compensation packages.
Even so, the complaint said that Starbucks still uses a “talent modifier” goal to determine compensation, which includes increasing the percentage of minority representation at the management level.
“So, despite varying its name and specific percentages over the years, Starbucks still considers DEI metrics as part of its [key performance indicators],” said the complaint.
Mr. Bailey also made the argument that Starbucks has harmed Missouri consumers by hiring employees based on race and other immutable characteristics rather than merit.
“Missouri’s consumers are required to pay higher prices and wait longer for goods and services that could be provided for less had Starbucks employed the most qualified workers, regardless of their race, color, sex, or national origin,” the complaint said.
President Trump has targeted race-based programs, signing executive orders banning DEI in the federal government and encouraging the private sector “to end illegal discrimination and preferences, including DEI.”
Mr. Bailey urged the court to block Starbucks from discriminating based on race, sex and ancestry; order Starbucks to rehire and rescind punishment from any employees fired or disciplined under its diversity policies, and award damages to be determined.
Starbucks has a U.S. workforce of 211,000 employees nationwide and 17,000 locations, including an estimated 200 in Missouri.
• Valerie Richardson can be reached at vrichardson@washingtontimes.com.