Starbucks has reached a settlement with the state of Florida over allegations concerning its diversity, equity and inclusion policies.
Florida had accused the company of violating state anti-discrimination law through measures including alleged racial quotas and the use of diversity targets linked to executive compensation.
Starbucks denied wrongdoing. Under the settlement, however, the company agreed that it would not use race or sex-based quotas or preferences when making decisions involving hiring, promotions and pay.
The company will also pay $1 million to the Florida Department of Legal Affairs to cover litigation costs and provide annual certifications of compliance for four years. Starbucks further agreed not to participate in organisations that require companies to increase racial diversity on their boards.
The settlement was jointly announced by Starbucks and Florida Attorney General James Uthmeier. His office said the agreement would apply nationwide.
The dispute forms part of a wider legal and political debate in the United States over how corporate diversity programmes interact with anti-discrimination laws.
Starbucks continues to deny that it acted unlawfully, while agreeing to the compliance measures set out in the settlement.
Comments
Log in or sign up to join the conversation.