Starbucks Manager Awarded $25M After Being Fired for Being White

United States labor laws are pretty strict when it comes to race. "The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment," the U.S. Equal Employment Opportunity Commission explicitly states on its website. Shannon Phillips, a regional manager for Starbucks, worked for the corporation for 13 years, managing a region of stores.

However, she was fired after an April 2018 incident resulting in the arrest of two black men at a Philadelphia store under her management. She went on to sue her former employer for wrongful termination, and this week, she won. 

On Monday, a New Jersey jury ruled in favor of Phillips, awarding her $25.6 million – $25 million in punitive damages and $600,000 in compensatory damages, according to her counsel, Console Mattiacci Law – after six days in the courtroom. 

The 2018 incident unfolded when two men who didn't place an order were asked to leave Starbucks while sitting at a table. They declined, stating they were waiting for a business associate. The store manager called the police, who arrived and escorted them out of the shop in handcuffs. The men later reached settlement agreements with Starbucks and the City of Philadelphia.

Phillips filed a lawsuit in 2019, claiming that Starbucks discriminated against her because of her race when she was let go. It said that Starbucks "took steps to punish White employees who had not been involved in the arrests, but who worked in and around the city of Philadelphia, in an effort to convince the community that it had properly responded to the incident."

According to Phillips, who didn't work in the store but oversaw the location, she was ordered by the company to place a White employee on administrative leave due to allegedly discriminatory conduct. However, Phillips said she knew those claims were inaccurate and tried to defend the employee. She was then let go.

The reason for termination was that "the situation is not recoverable," with the complaint arguing that this was "a pre-text for race discrimination," adding that Phillips' "race was a motivating and/or determinative factor in [Starbucks'] discriminatory treatment."

Starbucks denied the claims. In a 2021 court filing after the incident, the company stated that "senior leaders and members of Partner Resources all observed Ms. Phillips demonstrate a complete absence of leadership during this crisis."

They argued that she "appeared overwhelmed and lacked awareness of how critical the situation had become." Starbucks claimed that her manager chose to fire her "because strong leadership was essential during that time."