Starbucks Ordered to Pay Additional $2.7 Million in Lost Wages and Tax Damages to Former Manager Following Arrest of 2 Black Men
A recent court ruling has directed Starbucks to provide an extra $2.7 million in compensation for lost wages and tax-related losses to a former regional manager. This manager had previously been granted over $25 million in damages after asserting that she, along with other white employees, had been unjustly treated in the wake of the notable arrests of two Black men at a Starbucks store in 2018.
Back in June, Shannon Phillips secured $600,000 in compensatory damages, in addition to a substantial $25 million as punitive damages. A New Jersey jury determined that her dismissal had been influenced by her race, a violation of both federal and state anti-discrimination laws.
According to reports from The Philadelphia Inquirer, a U.S. district judge has now mandated Starbucks to pay Phillips an extra $2.73 million encompassing past and future lost earnings and benefits, along with compensation to offset tax disadvantages due to the lump-sum payment.
Starbucks had contested the notion of making any payment, contending that Phillips had not proven her incapacity to achieve equivalent or higher earnings in the future.
The incident in question occurred in April 2018 when a Philadelphia store manager summoned the police concerning two Black men who were seated in the coffee shop without having placed an order. The two individuals, Rashon Nelson and Donte Robinson, were eventually released without any charges.
Shannon Phillips, at the time a regional operations manager covering Philadelphia, southern New Jersey, and other areas, was not directly involved in the arrests. Nonetheless, she claimed that she was instructed to place an uninvolved white manager on administrative leave using reasons she believed to be false, according to her lawsuit.
Less than a month later, Phillips, aged 52, stated she was fired for voicing objections to the suspension of the manager amid the public uproar, as per her legal complaint.
Starbucks’ justification for suspending the district manager, who had no responsibility for the store where the arrests occurred, was centered around allegations of wage disparities between Black and white store managers, as outlined in the lawsuit.
Phillips pointed out that this argument made little sense, given that district managers had no influence over employee salaries.
The lawsuit contended that Starbucks was instead taking actions to “penalize white employees” in the area to create the illusion of a satisfactory response to the incident.
Starbucks’ legal team had argued that Phillips was dismissed due to the company’s need for stronger leadership after the arrests.
Starbucks is currently pursuing a new trial, asserting that the jurors’ negative opinions about the company had biased their judgment. The company also claims that inaccuracies in witness testimonies had a detrimental impact, and that Phillips shouldn’t have been awarded “double damages” for both state and federal allegations.
Meanwhile, Phillips’ legal representatives are seeking a demand for Starbucks to cover $1.4 million in legal fees incurred from 2018 through 2023.
The incident captured on video had sparked a nationwide outcry, leading Starbucks to subsequently reach a settlement with the two men for an undisclosed sum along with an offer of free college education.
The two men also reached an agreement with the city of Philadelphia for a symbolic payment of $1 each and a commitment to establish a $200,000 program for young entrepreneurs.
The Philadelphia Police Department introduced a new protocol for dealing with individuals accused of trespassing on private property, cautioning businesses against misusing the authority of law enforcement officers.
SOURCE: nbcnews.com