Starbucks was previously awarded more than $25 million to a former regional manager who claimed she and other white employees were unfairly punished after two Black men were arrested at a high-profile store in 2018. A judge has now ordered Starbucks to pay an additional $2.7 million in lost wages and tax damages to this woman.
What Happened?
Shannon Phillips was awarded $600,000 in compensatory damages and $25 million in punitive damages in June following the conclusion by a New Jersey jury that Phillips’ termination was motivated by his race, in violation of both federal and state anti-discrimination laws.
According to court records and the Philadelphia Inquirer, a U.S. district judge on Wednesday ordered Starbucks to compensate Phillips for tax disadvantages resulting from the lump payout as well as $2.73 million in lost earnings and benefits, both past and future. The business refused to pay any money since Philipps had not demonstrated that she couldn’t have made the same or more money in the future.
A Philadelphia store manager reported two Black guys who were idling about the coffee shop in April 2018 to the police. Donte Robinson and Rashon Nelson were afterwards freed without being prosecuted.
Fired Less Than A Month
In her case, Phillips, 52, claimed that she was fired less than a month after protesting to the manager’s leave of absence in the midst of the controversy.
Source: CNN
The lawsuit claims that the firm suspended the district manager, who was not in charge of the store where the arrests occurred, based on a claim that Black store managers received lower pay than White managers. According to Phillips, the reasoning was nonsensical because district managers had no say over employee pay.
Rather, the lawsuit said, Starbucks was moving to “punish white employees” who worked nearby “to persuade the community that it had appropriately responded to the incident.” Attorneys for Starbucks had said that Phillips was let go because the business required more capable leadership following the arrests.
Following a nationwide outcry sparked by a video of the arrest, the corporation settled with both guys for an undisclosed amount in exchange for a promise of a free college education.
The two guys struck a deal with the city of Philadelphia, whereby authorities promised to establish a $200,000 program for aspiring young entrepreneurs in exchange for a symbolic $1 from each of them. The Philadelphia Police Department has implemented a new policy that cautions companies against abusing police authority when dealing with individuals who are accused of trespassing on private property.
