In a surprising turn of events, a New Jersey federal judge has ordered Starbucks to pay an additional $2.7 million in damages to a former employee who was already awarded $25.6 million in a wrongful termination suit. Shannon Phillips, a former regional director for the coffee giant, filed the lawsuit in 2019, claiming that she was fired for being white. The ruling comes after a jury in Camden ordered Starbucks to pay Phillips the initial settlement money, including punitive and compensatory damages, following a trial in June. This case highlights the ongoing issue of racial discrimination in the workplace and raises questions about the responsibility of large corporations to address such concerns.

The controversy surrounding Phillips’ termination stemmed from a racially charged incident that occurred in April 2018, when two Black men were arrested at a Starbucks store for waiting for a business meeting without making a purchase. The incident sparked nationwide protests and prompted Starbucks to close some of its stores for a day to conduct racial bias training. Less than a month after the arrests, Phillips, who had been with the company for almost 13 years, was fired, despite claiming that she had no involvement in the incident. Her lawsuit alleged that her race played a significant role in the decision to terminate her employment. Starbucks, on the other hand, argued that there was no evidence of intentional discrimination and opposed awarding economic damages to Phillips. This ruling raises important questions about the consequences of alleged racial discrimination in the workplace and the potential impact on a company’s reputation.

Starbucks Ordered to Pay Former Employee Additional $2.7 Million in Damages

A New Jersey federal judge has ruled that Starbucks must pay an additional $2.7 million in damages to a former employee who was awarded $25.6 million in a wrongful termination suit. Shannon Phillips, a former regional director for the coffee chain, claimed that she was fired for being white. The ruling comes after a jury ordered Starbucks to pay Phillips the initial settlement amount, including punitive and compensatory damages.

In 2018, Starbucks faced a racial controversy when two Black men were arrested at one of their stores. This incident led to nationwide protests and prompted Starbucks to close some of its stores for racial bias training. Less than a month after the arrests, Phillips, who had worked for Starbucks for nearly 13 years, was terminated. She claimed that her race played a role in the company’s decision.

Phillips alleged in her lawsuit that she actively worked on crisis management efforts and ensured that the retail locations within her area were safe and welcoming for all customers, regardless of race. However, Starbucks argued that Phillips had not presented any evidence to support her claims of future wage loss and that there was no evidence of intentional discrimination.

The judge’s ruling includes back pay, front pay, and tax gross. Starbucks has been ordered to pay Phillips a total of $28.3 million in damages. The company has not commented on the ruling at this time.

This case highlights the importance of equal treatment and non-discrimination in the workplace. Starbucks, like any other company, is responsible for ensuring that all employees are treated fairly and without prejudice. The substantial damages awarded to Phillips send a strong message that wrongful termination based on race will not be tolerated.

Takeaways:

• Starbucks has been ordered to pay an additional $2.7 million in damages to a former employee who claimed she was fired for being white.
• The employee, Shannon Phillips, was initially awarded $25.6 million in a wrongful termination suit.
• The termination occurred following a racial controversy at Starbucks in 2018, where two Black men were arrested at one of their stores.
• Phillips claimed that she actively worked on crisis management efforts and ensured a safe and welcoming environment for all customers, regardless of race.
• The judge’s ruling highlights the importance of equal treatment and non-discrimination in the workplace.