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Starbucks has agreed to pay $1 million and avoid race or sex-based preferences in employment decisions under a settlement with the state of Florida.
The agreement resolves a lawsuit filed by Florida Attorney General James Uthmeier in December, which accused the coffee chain of violating state anti-discrimination law through its diversity, equity and inclusion policies.
According to Reuters, Florida state officials alleged that Starbucks had established racial quotas and linked executive compensation to the achievement of diversity targets. Starbucks denied any wrongdoing as part of the settlement.
The company has agreed not to use race or sex-based quotas or preferences when making decisions about hiring, promotions and compensation.
Although the case was brought by Florida, a spokesperson for the attorney general’s office said the agreement applies to Starbucks’ operations nationwide.
Starbucks to certify compliance for four years
Under the settlement, Starbucks will pay $1 million to the Florida Department of Legal Affairs to cover litigation costs.
The company must also submit annual certifications confirming its compliance with the agreement for the next four years. In addition, Starbucks has agreed not to participate in organizations that require members to increase the racial diversity of their boards of directors.
Uthmeier said the resolution would ensure the company’s employment policies and practices complied with Florida’s anti-discrimination laws.
“DEI can never be an excuse to violate civil rights,” he said.
Starbucks said it would concentrate “on offering great jobs and career opportunities to our partners who wear the green apron.”
The settlement does not represent an admission of wrongdoing by the company.
The Florida case is not the only legal action brought against Starbucks over its diversity policies. In February, a federal judge dismissed a similar lawsuit filed by the Missouri Attorney General’s Office. Missouri had also challenged the company’s alleged DEI practices, but the state is appealing the dismissal.
While Starbucks successfully secured the dismissal of the Missouri case at the federal level, it has now agreed to change or restrict certain practices to resolve Florida’s claims.
