Jury Awards $25.6 Million in New Jersey Reverse Discrimination Case

In June 2023, a federal jury awarded a New Jersey woman $25.6 million in damages as a result of her claim that Starbucks fired her due to her race.

Shannon Phillips, who is white, lost her job as a Starbucks Regional Director a few weeks after a widely publicized incident in April 2018 when police were called to remove two African American men from a Starbucks in Center City Philadelphia.  Phillips, a 13-year employee who was responsible for oversight of 100 stores in the mid-Atlantic region, which includes Philadelphia, claimed that Starbucks punished white employees who were not involved in the arrest but did not punish the Black District Manager of the store where the incident took place, nor did it punish Ms. Phillips’ supervisor who was Black.

The Black District Manager testified during the trial that he thought Ms. Phillips' race played a role in Starbucks' decision to terminate her and that his race was a reason that he felt "safe" and was not terminated. He also rebutted Starbucks' allegations that Ms. Phillips' leadership was absent during the weeks following the arrests, during which time there was intense media scrutiny and many "roundtable" discussions concerning race.

The jury unanimously found for Ms. Phillips on all of her federal and state claims, including finding that Ms. Phillips proved "by clear and convincing evidence" that punitive damages were warranted under the NJ Law Against Discrimination ("NJLAD"). The jury unanimously awarded $300,000 for compensatory damages and $12.5 million for punitive damages under the federal statutes, Title VII and Section 1981; and, $300,000 for compensatory damages and $12.5 million for punitive damages under the state statute, NJLAD. Ms. Phillips will also be seeking back pay and front pay damages which will be decided by the Judge, as well as attorneys' fees and costs. The case is Phillips v. Starbucks Corp.