The lawsuit contends that Starbucks’ policies violate federal and state civil rights laws. Credit: JRomero04/ Shutterstock.

Starbucks is facing a lawsuit from the US state of Missouri which claims the coffee giant has been discriminating based on race, gender and sexual orientation under diversity, equity and inclusion (DEI) policies.  

The complaint, filed in St Louis federal court, alleges that Starbucks’ executive pay is linked to racial and gender-based hiring quotas and accuses the company of favouring certain groups for training and advancement opportunities, as reported by Reuters. 

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The lawsuit, which challenges Starbucks’ policies implemented since 2020, contends that the company’s policies violate federal and state civil rights laws.  

Missouri Attorney General Andrew Bailey stated: “All of this is unlawful,” highlighting concerns over consumers facing higher prices and longer wait times due to the company’s employment practices.  

In response to the lawsuit, Starbucks stated: “We disagree with the attorney general and these allegations are inaccurate.  

“We are deeply committed to creating opportunity for every single one of our partners (employees). Our programs and benefits are open to everyone and lawful.” 

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Missouri’s legal action comes amid an ongoing debate on DEI initiatives. US President Donald Trump has opposed such policies, and companies such as Goldman Sachs and Google have recently rolled back diversity-focused measures. 

Missouri argues that Starbucks’ quota system for its board of directors and its employment practices are discriminatory. 

Starbucks, with a workforce of 211,000 in the US and 361,000 globally, has previously faced scrutiny over its diversity policies.  

In August 2023, a federal judge dismissed a shareholder lawsuit against the company’s DEI strategies.  

However, Missouri is now seeking to compel Starbucks to halt its alleged discriminatory practices, re-instate or reverse disciplinary actions against affected employees, and pay unspecified damages.