CAMDEN, N.J. (AP) — A judge has ordered Starbucks to pay an additional $2.7 million in lost wages and tax damages to a former regional manager who was earlier awarded more than $25 million after alleging she and other white employees were unfairly punished following the high-profile arrests of two Black men at a store in 2018. In June, Shannon Phillips won $600,000 in compensatory damages and $25 million in punitive damages after a jury in New Jersey found that race was a determinative factor in
In June, Shannon Phillips won $600,000 in compensatory damages and $25 million in punitive damages after a jury in New Jersey found that race was a determinative factor in Phillips’ firing, in violation of federal and state anti-discrimination laws.that U.S. district judge Wednesday ordered Starbucks to pay Phillips another $2.73 million in past and future lost earnings and benefits as well as compensation for tax disadvantages due to the lump sum, according to court documents.
Phillips, then regional manager of operations in Philadelphia, southern New Jersey, and elsewhere, was not involved with arrests. However, she said she was ordered to put a white manager who also wasn’t involved on administrative leave for reasons she knew were false, according to her lawsuit. The company’s rationale for suspending the district manager, who was not responsible for the store where the arrests took place, was an allegation that Black store managers were being paid less than white managers, according to the lawsuit. Phillips said that argument made no sense since district managers had no input on employee salaries.
Starbucks is seeking a new trial, arguing that jurors were allowed to remain despite having expressed negative opinions about the company, that incorrect information in witness testimony “poisoned the well,” and that Phillips should not have been awarded “double damages” on both the state and federal allegations, the Inquirer reported.
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