The state of Missouri has sued Starbucks, claiming its diversity, equity and inclusion (DEI) policies have led to customers paying more and waiting longer for their coffees.
The US state alleged the coffee chain used a commitment to diversity as a pretext to systematically discriminate based on race, gender and sexual orientation.
In the complaint, filed in St Louis federal court, Missouri also claimed executive pay was tied to the company achieving race and gender-based hiring quotas.
“Starbucks has decided to require outright race and sex-based discrimination in hiring via quotas, segregate employees on unlawful bases, and single out preferred groups for additional training and employment benefits,” the lawsuit read.
It added Starbucks’ actions had led to customers paying more and waiting longer for its goods and services as “the most qualified workers” weren’t hired.
Starbucks described the allegations as “inaccurate” and added: “We are deeply committed to creating opportunity for every single one of our partners (employees). Our programmes and benefits are open to everyone and lawful.”
The move from Republican attorney general Andrew Bailey marks the latest efforts in the US to push back DEI policies, led by Donald Trump’s new administration.
Mr Trump has tried to shut down such efforts inside the federal government and some companies have followed suit.
On Tuesday, Wall Street bank Goldman Sachs cancelled a policy to take companies public only if they had two diverse board members.
Last week meanwhile, Google got rid of its diversity-based hiring targets and Amazon.com removed a reference to inclusion and diversity from its annual report.
The policies under question were adopted by Starbucks in 2020, in the surging Black Lives Matter movement that followed the murder of George Floyd.
Missouri added that Starbucks’ alleged behaviour “should come as no surprise,” pointing to new chief executive Brian Niccol’s support of environmental, social and governance goals while leading Chipotle.
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The state is hoping to force Starbucks to end its diversity policies, rehire and rescind discipline against employees affected and pay unspecified damages.
