January 1, Starbucks Must Pay $25M After Firing Manager for Being White

ON THIS DAY IN HISTORY…
1908: A giant fireball, most likely caused by the air burst of a large meteoroid or comet flattens 80 million trees near the Stony Tunguska River in Yeniseysk Governorate, Russia, in the largest impact event in recorded history.

• Former Starbucks manager awarded $25 million by federal jury in a wrongful termination lawsuit.
• Shannon Phillips claimed she was fired because of her race following the viral incident involving the arrest of two black men at a Philadelphia store.
• The jury found that Phillips’ race played a role in Starbucks’ decision to terminate her employment, violating her civil rights.

In a recent, highly-publicized legal battle, a white Starbucks regional manager has triumphed over the coffee behemoth, being awarded a hefty $25 million in damages by a federal jury.

The grounds of the case were that Shannon Phillips, the manager in question, was wrongfully terminated because of her race amidst a storm of racial controversy in 2018.

Phillips managed various Starbucks locations across New Jersey and Pennsylvania, including the Philadelphia store where two black men were barred from using the bathroom, a situation that led to their arrest.

Despite having no involvement in the incident, Phillips was removed from her position in what she argued was a scapegoating move by Starbucks.

The company aimed to demonstrate their commitment to tackling racial bias, a sentiment that resonated deeply across the nation following the contentious incident.

It’s important to recall that this racial controversy began when an employee at the Rittenhouse Square Starbucks called 911 on April 12, 2018.

This was after Rashon Nelson and Donte Robinson, the two men in question, were denied restroom access because they were not paying customers and subsequently refused to leave.

Both men maintained they were simply awaiting a potential real estate business partner at the time.

Their arrest sparked widespread protests at Starbucks locations nationwide, with calls for a nationwide boycott.

Here is a video of the initial incident below:

In response, Starbucks elected to temporarily close 8,000 locations for staff to undergo anti-bias training.

The fallout from the incident didn’t stop there, though. Phillips, a 13-year veteran with Starbucks, was let go a month later.

On the other hand, the manager of the Philly store, who happens to be black, remained employed.

Laura Mattiacci, Phillips’ attorney, made a significant point during the six-day trial.

The store manager’s employment continued, she contended, precisely because he is black.

Starbucks fought back, arguing that Phillips was dismissed due to her ineffectiveness and absenteeism following the arrests.

Interestingly, Starbucks has chosen to remain silent on the verdict.

Bottom Line

In the end, Phillips walked away with $25.6 million in both compensatory and punitive damages. She also plans to seek back pay, according to her attorney.

Meanwhile, the charges against Nelson and Robinson were dropped, and both men reached an undisclosed settlement with Starbucks and the city.

The saga serves as a stark reminder of the fragile state of race relations in America, and the need for businesses to tread with caution and fairness.

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