Global coffee chain Starbucks is facing legal action in the US state of Missouri for allegedly violating federal and state statutes that forbid discrimination based on race.
Missouri Attorney General (AG) Andrew Bailey filed the complaint on behalf of the state in the United States District Court for the Eastern District of Missouri Eastern Division on 11 February 2025.
The allegations include the implementation of compensation practices linked to quotas related to race and gender, biased practices concerning training and promotional opportunities based on race and gender, and discriminatory selection criteria for board membership along racial and gender lines.
"All of this is unlawful," Bailey stated in the complaint.
“As Attorney General, I have a responsibility to protect Missourians from a company that actively engages in systemic race and sex discrimination.
“Racism has no place in Missouri. We’re filing suit to halt this blatant violation of the Missouri Human Rights Act in its tracks.”
He added: “With Starbucks’ discriminatory patterns, practices and policies, Missouri’s consumers are required to pay higher prices and wait longer for goods and services that could be provided for less had Starbucks employed the most qualified workers, regardless of their race, colour, sex or national origin.”
As of 2023, Starbucks operated close to 200 locations across Missouri. It employs 211,000 people in the US and 361,000 globally.
The company has employed thousands of residents of the US state since 2020 and continues to receive numerous job applications.
Starbucks also hires individuals who, while not residing in Missouri, perform work intended to have a direct impact on employment and the economy within the state.
The lawsuit further alleges that discriminatory practices result in Missouri consumers facing inflated prices and extended waiting times due to Starbucks not hiring the most qualified individuals.
In its defence, Starbucks denied the accusation stating: "We disagree with the attorney general and these allegations are inaccurate. 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."
As of 13 January 2024, Starbucks lists 234 job openings in Missouri, spanning roles from barista to store manager and district manager. In addition to the many in-person positions available within the state, Starbucks also provides remote nationwide job opportunities.
The controversy comes in the wake of a broader national debate over diversity, equity and inclusion policies imposed by US President Donald Trump.
In January 2025, Target decided to end its three-year diversity, equity and inclusion (DEI) initiatives, following major American retailers and companies such as Walmart, Amazon and Meta.
In a related development, Reuters has reported that in August 2023 a federal judge in Spokane dismissed a shareholder lawsuit that challenged Starbucks' diversity policies.
In November 2024, it was revealed that Starbucks reduced its retail workforce in the US by 8% during its most recent fiscal year, despite opening several new locations.
