Starbucks settles Florida lawsuit alleging its diversity policies were illegal

Sept 17 (Reuters) – Starbucks said on Thursday it would settle a discrimination suit brought by the state of Florida, vowing not to employ race- or sex-based quotas or preferences in hiring, promotion or pay.

Florida and its Republican attorney general, James Uthmeier, jointly announced the settlement of a lawsuit the state filed last December.

Florida had alleged that Starbucks violated state anti-discrimination law, pointing to racial quotas and the linking of executive pay to the achievement of diversity targets.

Starbucks denied any wrongdoing, saying in a statement that it would remain focused on "offering great jobs and career opportunities to our partners who wear the green apron."

As part of the agreement, Starbucks will follow Florida law, pay $1 million to the Florida Department of Legal Affairs for litigation costs, and provide yearly compliance certifications over four years. The company also agreed not to join organizations that mandate greater racial diversity on its board of directors.

According to a spokesperson for Uthmeier's office, the deal applies across the country.

In a statement, Uthmeier said the settlement guarantees that Starbucks' employment policies and practices align with Florida's anti-discrimination laws. "DEI can never be an excuse to violate civil rights," he added.

The lawsuit fits into wider attempts by numerous Republican officials, among them those in President Donald Trump's administration, to remove diversity, equity and inclusion programs from business, government and education.

In February, a federal judge threw out a comparable suit from the Missouri attorney general's office that challenged Starbucks' purported diversity policies. Missouri is appealing that ruling.