'Racism Has No Place in Missouri': State Attorney General Sues Starbucks Over Hiring Policies

Missouri Attorney General Andrew Bailey has initiated legal action against Starbucks Corp SBUX, alleging the company breached both federal and state anti-discrimination laws.

The lawsuit asserts that Starbucks employs hiring methods influenced by race and gender, unlawfully segregates its employees, and provides special training and benefits to certain groups based on discriminatory standards.

These actions are claimed to violate workplace discrimination laws at both the state and federal levels. The lawsuit arises amid ongoing changes in the legal framework concerning employment discrimination.

According to the complaint, by tying compensation to race and gender quotas, Starbucks has caused higher prices and longer service delays for customers in Missouri.

“With Starbucks’ discriminatory patterns, practices, and policies, Missouri’s consumers are required to pay higher prices and wait longer for goods and services that could be provided for less had Starbucks employed the most qualified workers, regardless of their race, color, sex, or national origin,” per the lawsuit.

Also Read: Coca-Cola Pops In Q4—Revenue Soars 6%, CEO Hails ‘All-Weather Strategy’

Additionally, the company is accused of using similar quotas when choosing board members. These practices, the lawsuit pointed, directly conflict with federal regulations that forbid discrimination based on race, color, sex, or national origin.

The state has requested that the court immediately halt these discriminatory actions.

“Racism has no place in Missouri. We’re filing suit to halt this blatant violation of the Missouri Human Rights Act in its tracks,” said Bailey.

This lawsuit is not Bailey’s first legal challenge of this nature. In June 2024, he also filed a case against International Business Machines Corporation for comparable violations under the Missouri Human Rights Act (MHRA).

That case, which also addresses race-based hiring quotas, is still being processed in the courts.

Price Action: SBUX shares closed lower by 0.38% at $111.03 on Tuesday.

Read Next:

• Hesai’s Lidar Takes On Bigger Role In BYD’s ‘God’s Eye’ Advanced Driver Assistance

Image via Shutterstock.