Starbucks Has To Pay Former Manager $28.3 Million After She Was Fired For Being White

By Khadija Pervez in News On 21st August 2023
advertisement

A former employee has been awarded $28.3 million by a federal judge, following her termination from Starbuck. The dismissal came after an incident where two Black men were falsely arrested.

Shannon Phillips filed a lawsuit against the coffee shop chain after losing her job. She alleged that her firing was influenced by her white ethnicity in connection to the incident. Interestingly, a colleague of hers, who was a person of color, did not face the same consequence.

AP

The situation occurred at a Philadelphia branch in 2018, involving Rashon Nelson and Donte Robinson, both Black men. They were waiting for someone at the branch when the incident unfolded. Nelson wasn't allowed to use the restroom because he hadn't bought anything from the outlet.

advertisement
AP

Later, employees approached the two men to offer assistance, but they declined, stating that they were present for a business meeting and frequently used Starbucks locations for similar purposes.

The situation escalated as staff contacted the police. Subsequently, law enforcement approached the two individuals within the coffee shop.

In an interview on ABC News Robinson recalled how the officer had approached him, saying: "It was just, 'Get out, you have to leave. You're not buying anything, so you shouldn't be here.'"

He added: "There was no reasoning. They had nothing. They just kept using ‘defiant trespassing’ as their excuse for putting us behind bars."

advertisement
Paul Warburton/Alamy Live News

The two gentlemen were placed in handcuffs and transported to the police station, but they were eventually released without facing any charges. During their time in custody, Nelson expressed that he felt his life was in danger.

advertisement

The recording of their arrests was shared widely on the internet, leading to its viral spread, and this incident sparked off protests.

In reaction to the situation, Starbucks took steps to address racial bias by organizing training on the subject for its branches.

advertisement
Linkedin/Shannon Phillips

Nevertheless, regional manager Phillips contended that her firing was unjust as she had raised concerns about a white manager's dismissal. Interestingly, the store's manager involved in the incident, who was of Black ethnicity, retained their position.

advertisement

Phillips claimed that her being white played a role in her dismissal, asserting that her ethnicity was a determining factor in the decision.

Her lawyers said: "Upper management of Starbucks were looking for a 'scapegoat' to terminate to show action was being taken."

advertisement

The assertion was confirmed, resulting in Starbucks being instructed to pay $25.6 million initially as a form of punishment for violating her federal rights. An additional payment of $2.7 million was later directed, intended to cover her economic losses and attorney fees as determined by the court.

advertisement

Rashon Nelson and Donte Robinson, later on, made an arrangement with Starbucks for an undisclosed amount of money. They also worked out a deal with Philadelphia, where they were symbolically paid $1 each. In return, the city committed to investing $200,000 in a program to help young entrepreneurs.