Starbucks Wins Missouri Lawsuit Over ‘Discrimination in Diversity Policies’

A federal judge in Missouri dismissed a lawsuit brought by the Republican-led state accusing Starbucks of using its commitment to diversity, equity and inclusion (DEI) as a cover to systematically discriminate on the basis of race, gender and sexual orientation.

 

US District Judge John Ross, based in St. Louis, ruled that the state’s case failed to demonstrate that Starbucks had discriminated against “even a single Missouri resident” employed by or applying to the company. Ross was appointed by former President Barack Obama.

 

The lawsuit, initially filed by Missouri’s former Attorney General Andrew Bailey before he joined the Trump administration as co-deputy director of the FBI, alleged that Starbucks had unlawfully tied executive pay to the achievement of racial and gender hiring quotas. The current Attorney General, Catherine Hanaway, said the state would continue to pursue cases against companies whose hiring practices violate Missouri law.

 

The complaint also accused Starbucks of providing preferred groups with additional training and advancement opportunities and employing quotas to ensure diversity on its board of directors. Starbucks did not immediately respond to a request for comment.

 

The case follows a broader push by former President Donald Trump to roll back DEI initiatives in federal agencies, schools and the private sector. Several companies, including Goldman Sachs, Google, Amazon and Target, have publicly discontinued such programmes, though some maintain efforts behind the scenes.

 

Missouri challenged Starbucks’ policies introduced in 2020, following the murder of George Floyd, which sparked nationwide protests and prompted companies to re-evaluate employment practices. Starbucks employs over 200,000 people in the US and 360,000 worldwide.

 

This is not the first time Starbucks has successfully defended its DEI policies in court. In 2023, a federal judge in Spokane, Washington, dismissed a shareholder lawsuit challenging the company’s diversity initiatives, noting that such issues were matters of public policy for companies and lawmakers, not the courts.

 

Missouri had sought to compel Starbucks to end alleged discrimination, reinstate or rescind disciplinary actions against affected employees, and pay unspecified damages.

 

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