Starbucks Faces Additional $2.7M Payment in Case of Fired Employee Alleging Racial Bias

Starbucks Faces Additional $2.7M Payment
Photo credit: David Zorrakino/Europa Press via Getty Images.

A former Starbucks employee, Shannon Phillips, who had previously won a $25.6 million settlement in a wrongful termination lawsuit, is now being granted an extra $2.7 million by a New Jersey federal judge.

The recent ruling, issued by Judge Joel Slomsky, demands Starbucks to provide Phillips with $2,736,755 encompassing back pay, front pay, and tax gross, as indicated in court records.

Phillips, a former regional director for Starbucks, had filed a suit in 2019 asserting that she was dismissed based on her race, being white. Phillips, aged 52, alleged that her race played a pivotal role in Starbucks’ decision to terminate her employment after a racially charged incident in 2018.

The incident involved the arrest of two Black men, Donte Robinson and Rashon Nelson, who were taken into custody while waiting for a business meeting. Their arrest, which caused nationwide protests, prompted Starbucks to shut down certain stores for a day to conduct racial bias training.

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Despite Phillips’ assertion of not being present at the store during the incident and having no connection to the arrests, she was informed of her termination less than a month later.

This judgment follows a previous verdict by a Camden jury that ordered Starbucks to pay Phillips $25.6 million in compensation, including punitive and compensatory damages, following a trial in June.

Further update is available at ABC News

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