Former Starbucks Manager Shannon Phillips Wins Additional $2.7 Million, Totaling Nearly $30 Million in Wrongful Termination Case
The coffee giant ordered to pay nearly $30 million to former regional manager Shannon Phillips, leading to nationwide anti-bias training and restroom policy amendments.
In matters of truth and justice, there is no difference between large and small problems, for issues concerning the treatment of people are all the same.
In a decision that has captured national attention, Shannon Phillips, a former regional manager for Starbucks, has been awarded an additional $2.7 million to cover legal fees in her wrongful termination lawsuit against the coffee giant. This brings her total compensation to nearly $30 million following a New Jersey federal court ruling.
The case began in 2018 when two black men, Rashon Nelson and Donte Robinson, were denied access to the bathroom at Starbucks' Rittenhouse Square location. The men were waiting for a potential real estate business partner and were subsequently arrested for trespassing after refusing to leave.
Phillips, who oversaw several Starbucks locations across New Jersey and Pennsylvania, was not involved in the arrests but was fired a month later. Starbucks vaguely cited that "the situation is not recoverable" as the reason for her termination after a 13-year tenure.
The lawsuit, filed in 2019, claimed that Starbucks "took steps to punish white employees who had not been involved in the arrests" to appease the community. During a six-day trial, it was revealed that another manager of the Philly store, who is black, retained his job, a decision Phillips' attorney argued was racially motivated.
Phillips was awarded $25.6 million in compensatory and punitive damages, and now, with the additional $2.7 million for legal fees, her total compensation reaches nearly $30 million. Of this sum, $2.6 million will cover back and front pay damages, with the remaining $66,000 intended to offset taxes on the award.
Starbucks has since filed an opposition to the latest order, arguing that the legal fees are "excessive." The company declined to comment on the recent court filings.
Since the incident, Starbucks has undergone significant changes, including temporarily shutting down 8,000 locations for anti-bias training and amending its policy to allow restroom access regardless of purchase.
Phillips has moved on to work as the regional sales director for furniture giant Raymour & Flanigan. Meanwhile, Nelson and Robinson have settled with Starbucks for an undisclosed sum and an offer of free college tuition.
The case serves as a stark reminder of the ongoing challenges and complexities surrounding racial bias in America's corporate landscape. Starbucks' policy changes and the substantial settlement underscore the importance of fair treatment and equality in words and actions.
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