Starbucks Ordered to Pay Former Manager $25 Million After Firing Her for Being White

unions move
Justin Sullivan/Getty Images
Elaine Mallon

A New Jersey federal jury awarded a white Starbucks manager $25 million after finding the coffee giant fired her because of her race.

Starbucks terminated Shannon Phillips in 2018 after two black men were arrested at a Rittenhouse square, Philadelphia, store, the Daily Mail reported. Rashon Nelson and Donte Robinson were waiting for a third person to arrive for a business meeting. The men were refused access to the bathroom since they did not purchase anything. An employee called 911 on the men, and they were detained by police, the Law.com reported.

Rashon Nelson, left, and Donte Robinson, right, both 23, sit in their attorney's conference room as they pose for a portrait following an interview with the Associated Press Wednesday April 18, 2018 in Philadelphia. Their arrests at a local Starbucks quickly became a viral video and galvanized people around the country who saw the incident as modern-day racism. In the week since, Nelson and Robinson have met with Starbucks CEO Kevin Johnson and are pushing for lasting changes to ensure that what happened to them doesn't happen to future patrons. They are also still processing what it means to have had an everyday encounter escalate into a police confrontation. (AP Photo/Jacqueline Larma)

Rashon Nelson, left, and Donte Robinson, right, both 23, sit in their attorney’s conference room as they pose for a portrait following an interview with the Associated Press Wednesday April 18, 2018, in Philadelphia. Their arrests at a local Starbucks quickly became a viral video. (Jacqueline Larma/AP)

The arrests caused widespread protests, and Starbucks temporarily closed 8,000 stores so employees could participate in racial-bias education training.

Phillips argued that Starbucks only punished white employees over the incident as a way to repair their public image. The black supervisor of the Starbucks, Paul Skyes, reportedly did not receive any disciplinary action from the company. As a regional manager, Phillips oversaw over 100 stores across Philadelphia, New Jersey, Delaware, and Maryland and had been with company for 13 years.

She was reportedly instructed to place a white manager of 15 years from another store on administrative leave due to allegations of racial discrimination. Employees claimed that black employees were making less than white employees, but the manager had no control over wages. Phillips pushed back on suspending the manager since she had never seen him display discriminatory behavior.

One week after the incident Phillips was fired, according to Restaurant Business. She claimed she was fired since Starbucks needed a scapegoat after the company said the “situation is not recoverable.”  The jury awarded her $25 million in punitive damages and $600,000 in compensatory damages.

The two men eventually reached a settlement with Starbucks and received an undisclosed amount and a free college education. They also settled with the city for a symbolic $1 each and received a promise from officials that a fund would be set up for young entrepreneurs.

COMMENTS

Please let us know if you're having issues with commenting.