A court has given order that Starbucks should pay an additional $2.7 million in lost wages and tax damages to a former regional manager who was earlier awarded more than $25 million making a total of $27.2 million after accusing the organization of unfair treatment and punishment to her and some other white employees following the arrests of two Black men at a store in 2018.
A judge’s ruling has mandated Starbucks to pay an extra $2.7 million in lost wages and tax damages to a former regional manager who previously received over $25 million in a lawsuit where she alleged racial discrimination.
Shannon Phillips won $600,000 in compensatory damages and $25 million in punitive damages from a jury, who found that her firing was racially motivated, violating anti-discrimination laws.
According to the Philadelphia Inquirer, a U.S. district judge has now ordered Starbucks to pay Phillips another $2.73 million for past and future lost earnings, benefits, and tax disadvantages due to the lump-sum payment.
Starbucks opposed this, claiming that Phillips hadn’t proven she couldn’t have earned the same or more in the future.
The case stemmed from the arrests of two Black men at a Starbucks store in 2018.
While Phillips, a regional manager, was not involved in the arrests, she alleged that she was unfairly treated and eventually fired after objecting to the suspension of a white manager who also wasn’t involved.
Starbucks faces new trial amid dispute over former manager’s firing
The company’s rationale for suspending the manager was related to alleged pay disparities between Black and white managers, an argument Phillips deemed baseless.
Starbucks plans to seek a new trial, asserting that jurors who expressed negative opinions about the company were allowed to remain, and that incorrect witness testimony affected the proceedings.
On the other side, Phillips’ legal team is requesting $1.4 million in legal fees from 2018 to 2023.
The case followed a widely-publicized incident where two Black men were arrested at a Philadelphia Starbucks for sitting in the shop without making a purchase.
Starbucks later settled with the men and agreed to support their education endeavors.
