A former Starbucks regional manager was just awarded $25.6 million after she was fired from her job following the arrests of two Black men at a Philadelphia store five years ago in a case that set a categorical example of racial profiling and implicit bias.
A New Jersey federal jury ruled that Starbucks violated the federal civil rights of Shannon Phillips. That jury ultimately determined that Starbucks fired Phillips “because she was white,” The New York Times reports.
In a unanimous decision, jurors concluded that race was a determinative factor in Phillips’ firing, violating federal and state anti-discrimination laws.
In April 2018, two Black men entered a Starbucks shop in Rittenhouse Square, waiting on their white business partner to arrive. After not ordering anything, one of the men asked to use the bathroom and was refused. The staff asked the men to leave, and when they didn’t, one worker called the police to report they were trespassing.
Both men were arrested at the shop. Cellphone footage capturing their arrests was heavily circulated online, garnering a tremendous number of views and a wave of backlash, triggering several boycotts and protests at the time. The imposing amount of attention prompted Starbucks to shut down 8,000 of its stores for racial bias training as well as an apology from CEO Kevin Johnson.
The two men were released, and no charges were brought against them.
Shannon Phillips was terminated less than a month after the arrests. As the former regional manager, Phillips oversaw Starbucks locations in southern New Jersey, Delaware, Maryland, and the Philly region for 13 years. However, she had nothing to do with the arrests.
Phillips federally sued the chain in 2019, alleging that discrimination played a role in her firing and the actions Starbucks took as a result of the colossal amount of attention the incident picked up.
Her suit accused Starbucks of taking steps to “punish white employees who had not been involved in the arrests.” She insisted that her race was a “motivating” or “determining” factor and alleged that Starbucks took no action against the district manager of the Philadelphia store, who is Black.
Phillips also mentioned that her termination happened after Starbucks pressured her to suspend another white manager who had nothing to do with the arrests at the Philly store but was accused of paying white employees more than nonwhite ones – allegations she claims she knew were false. She was fired after disputing the decision to place that employee on leave.
She accused the coffee conglomerate of scapegoating white employees to “convince the community that it had properly responded to the [arrest] incident.” When she pushed back on those efforts, she was fired by managers who told her “the situation is not recoverable.” Phillips claimed Starbucks caused her “irreparable injury and monetary damages.”
The company’s filing in response to Phillips’ suit was she was fired because she did not lead her team in the aftermath of the public relations problems the two Black men’s arrests caused Starbucks. “During this time of crisis, Starbucks’ Philadelphia market needed a leader who could perform. Ms. Phillips failed in every aspect of that role,” the company attorneys wrote.
The verdict that just came down from a federal jury granted Phillips $25 million in punitive damages and $600,000 in compensatory damages.
A lawyer for Phillips said that she and her client were “very pleased” with the ruling.
Starbucks has yet to comment on the verdict.
Donte Robinson and Rashon Nelson, the men who were arrested five years ago, also sued Starbucks. The parties confidentially settled, and both men were granted a $200,000 investment from the city of Philadelphia to help fledgling entrepreneurs.
