On Monday, a federal jury awarded a White former Starbucks manager with $25 million after she successfully convinced them that she had been fired by the coffee chain due to her race.
As the New York Post reports, Shannon Phillips previously oversaw several locations in New Jersey and Pennsylvania, as a regional manager who had been with the company for 13 years. Her lawsuit stems from a 2018 incident in which two black men attempted to use the restroom of a Philadelphia Starbucks, and were denied due to not being paying customers. When the men subsequently refused to leave, the police were called and the men were arrested and forced off the property.
Starbucks will close 16 stores in various U.S. cities, citing safety concerns.
“After careful consideration, we are closing some stores in locations that have experienced a high volume of challenging incidents that make it unsafe to continue to operate,” company spokesperson said Tuesday.
Mega coffee chain Starbucks on Thursday praised an Arizona federal judge’s decision not to reinstate several former employees who argued they lost their positions for helping to organize a labor union in their coffee shop.
The decision was handed down Wednesday by U.S. District Judge John Tuchi in a Phoenix district court.
Corporations previously outspoken about hot-button social issues have stayed quiet on the likely overturning of Roe v. Wade after a dramatic fight between Disney and Florida Republican Gov. Ron DeSantis over the company’s political activism.
Following the leak of a draft opinion indicating the Supreme Court is likely to overturn Roe v. Wade, Democrats are trying to ram through a bill legalizing third trimester abortions; however, corporations are largely staying out of the fray, following Disney’s disastrous battle with Republican Florida Gov. Ron DeSantis that ended with the company losing its special tax privileges.
Seattle-based Starbucks announced this week that is dropping its policy requiring employees to be vaccinated against COVID-19.
The coffee giant’s move comes in response to last week’s United State Supreme Court ruling to block the Biden Administration from requiring businesses in the private sector to put vaccine mandates in place.
Seattle-based Starbucks announced it will increase hourly wages next year as the coffee giant faces the dual pressures of unionization attempts and staffing shortages.
According to a press release from the company, starting in January of 2022, hourly employees with two or more years of service could see a 5% raise and those with five or more years of service could see a 10% raise.
By the summer of next year, the company says its average hourly pay will be $17, up from the current average of $14. Employees will make between $15 and $23 an hour across the country, depending on location and tenure.
The press release did not address what impact the moves will have on coffee prices.