A federal judge has ordered Starbucks to pay an additional $2.7 million in damages to a former manager in Pennsylvania who was fired five years ago due to her race. The judge’s ruling comes after Shannon Phillips was already awarded $25.6 million in June by a federal jury who determined that she had been fired because she is White. In addition to the monetary damages, Starbucks will also provide Phillips with $1 million in back pay, $1.6 million in front pay, and approximately $66,000 in tax gross damages. These funds are part of a court-determined economic loss and attorneys’ fee award.
Starbucks has declined to comment on the additional payment. In court documents filed last month, the company argued that Phillips did not deserve the extra compensation because she has not actively sought employment since leaving the company. However, Starbucks suggested that they would be open to paying her $78,343 in additional damages.
Phillips, a former regional manager for Starbucks, oversaw multiple coffee shops in the Philadelphia area. She lost her job in the aftermath of a 2018 incident at a Starbucks in Rittenhouse Square where two Black men were falsely arrested. The incident sparked protests and led to Starbucks closing all its stores for anti-bias training.
Phillips sued Starbucks in 2019, claiming that race played a role in her termination. Her lawyers argued that upper management was looking for a scapegoat following the incident, and Phillips became the target. The manager of the Rittenhouse Square coffee shop, who was Black, retained his job.
In conclusion, the federal judge’s ruling requires Starbucks to pay an additional $2.7 million in damages to Shannon Phillips, who was wrongfully fired due to her race. This case highlights the importance of addressing racial discrimination in the workplace and holding companies accountable for their actions.
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