Missouri Attorney General Andrew Bailey has filed a lawsuit against Starbucks, accusing the coffee chain of violating federal and state anti-discrimination laws by tying hiring, promotion, and compensation practices to race and gender.
The suit, filed in the U.S. District Court for the Eastern District of Missouri, alleges that Starbucks enforces hiring quotas based on race and sex, offers exclusive training programs to specific groups, and links executive pay to diversity targets. Bailey contends these practices violate the Missouri Human Rights Act and federal laws prohibiting employment discrimination.
“As Attorney General, I have a responsibility to protect Missourians from a company that actively engages in systemic race and sex discrimination,” Bailey said in a statement. “Racism has no place in Missouri. We’re filing suit to halt this blatant violation of the Missouri Human Rights Act in its tracks.”
The lawsuit takes issue with Starbucks’ diversity, equity, and inclusion (DEI) initiatives, which the company has publicly promoted. According to the complaint, Starbucks has set racial and gender representation goals for its workforce and has tied executive compensation to meeting those goals. The suit claims that these targets function as unlawful quotas that disadvantage certain employees and applicants.
Starbucks has also implemented mentorship and leadership programs intended to support Black, Indigenous, and other employees of colour, as well as LGBTQ+ employees. The lawsuit argues that such programs, by restricting participation based on race and gender, amount to unlawful workplace segregation.
Further, the complaint asserts that these policies negatively impact consumers by allegedly leading to higher prices and longer wait times due to Starbucks’ purported prioritization of demographic targets over merit-based hiring.
The Missouri lawsuit follows a broader trend of legal challenges against corporate diversity initiatives. Bailey previously filed a similar suit against IBM in 2024, alleging discriminatory hiring practices.
In a statement to CBS News responding to Missouri’s suit, Starbucks said, “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 programs and benefits are open to everyone and lawful.”
The case is expected to test the legal boundaries of corporate diversity policies and whether they constitute unlawful discrimination under federal and state law.
