Starbucks Ordered to Pay $2.7 Million in Damages to Former Regional Manager
A recent court ruling has ordered Starbucks to pay an additional $2.7 million in lost wages and tax damages to a former regional manager, Shannon Phillips. This ruling comes after Phillips was previously awarded over $25 million in compensatory and punitive damages.
The initial lawsuit was filed by Phillips, along with several other white employees, who alleged that they were unfairly punished following the high-profile arrests of two Black men at a Starbucks store in 2018. Phillips claimed that race played a determinative role in her firing, violating both federal and state anti-discrimination laws.
In this latest development, a U.S. district court judge has ordered Starbucks to compensate Phillips for past and future lost earnings and benefits, as well as the tax disadvantages resulting from the lump sum settlement. The company had opposed paying any additional amount, arguing that Phillips had not provided sufficient evidence to prove that she couldn't have earned the same or more in the future.
The incident at the center of this case occurred in April 2018 when a Philadelphia store manager called the police on two Black men who were sitting in the coffee shop without placing an order. The two men, Rashon Nelson and Donte Robinson, were later released without charges.
While Phillips was not directly involved in the arrests, she claimed that she was instructed to put a white manager on administrative leave for reasons she knew were false. She objected to this decision amidst the ensuing controversy and was subsequently fired less than a month later.
This ruling serves as a significant victory for Shannon Phillips and highlights the ongoing conversation surrounding racial discrimination and bias in the workplace. Starbucks now faces substantial financial repercussions as a result of their handling of this situation and the subsequent treatment of their employees.
Starbucks Faces Lawsuit Alleging Racial Discrimination
Starbucks finds itself at the center of a legal battle after allegedly suspending a district manager based on baseless claims of racial pay disparity. The company stands accused of targeting white employees in an attempt to appease the local community following a highly-publicized incident.
While Starbucks maintained that the district manager was terminated due to a need for stronger leadership post-arrests, the accusations suggest otherwise. The coffee giant is now seeking a new trial, arguing various flaws in the proceedings, including juror bias and tainted witness testimony. Additionally, they contest the validity of awarding "double damages" to the plaintiff.
On the other side, Phillips' legal team is seeking $1.4 million in compensation for their services during the litigation process. Despite the legal dispute, Starbucks previously reached a settlement with the two men involved in the incident, providing them with an undisclosed sum of money and an opportunity for higher education.
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