Starbucks Corporation agreed to settle a discrimination lawsuit filed by the state of Florida, pledging not to use race- or sex-based quotas or preferences in hiring, promotion, and pay decisions nationwide. Under the settlement, Starbucks will pay $1 million to Florida's Department of Legal Affairs to cover litigation costs and submit annual compliance certifications for four years, while denying any wrongdoing. Florida had sought $10,000 for each alleged instance of discrimination and estimated potential penalties in the tens of millions of dollars, so the $1 million payment equals roughly 0.01% of the company's $9.3 billion in fiscal third-quarter revenue. The company also agreed not to participate in organizations that require greater racial diversity on corporate boards, extending the settlement's reach beyond the state that filed the lawsuit. A federal judge separately dismissed Missouri's similar lawsuit after finding the state had not identified a single Missouri employee or applicant who faced discrimination, though Missouri is appealing that ruling. Starbucks recently reported four consecutive quarters of comparable-sales growth, lifted its annual forecasts and expanded its consolidated operating margin to 14.4% from 10.1% a year earlier, as CEO Brian Niccol focuses on customer traffic, service times, store operations and profitability.
Starbucks CorporationStarbucks agreed to a $1M settlement and nationwide hiring/promotion limits plus board-diversity restrictions after Florida's discrimination suit.
