Key points:

• Missouri has filed a lawsuit against Starbucks, alleging discrimination masked by diversity, equity, and inclusion (DEI) policies.
• The complaint claims these practices have led to higher consumer prices and slower service.
• Starbucks has denied the allegations, asserting its commitment to lawful and inclusive hiring practices.

On February 11, 2025, Missouri Attorney General Andrew Bailey filed a lawsuit against Starbucks, accusing the coffee giant of using its commitment to diversity, equity, and inclusion (DEI) as a façade for systematic discrimination aimed at race, gender, and sexual orientation. In a Reuters report, the complaint alleges that Starbucks' policies tie executive compensation to achieving racial and gender hiring quotas, while also providing preferential training opportunities to select groups, thus breaching both federal and state civil rights laws.

Bailey contends that these practices not only harm consumers, who allegedly face higher prices and longer service waits but also compromise the quality of staff by not hiring the most qualified candidates. "Starbucks' discriminatory patterns and policies require Missourians to pay higher prices and wait longer for service," Bailey stated. According to Al Jazeera, the lawsuit seeks an end to these alleged discriminatory practices and demands unspecified damages.

Starbucks has publicly rejected these claims, asserting through a company spokesperson, "We strongly disagree with the attorney general… Our programs and benefits are open to everyone and lawful." The company reiterates its dedication to inclusivity and fair hiring, pointing out that its policies provide opportunities for all employees, as mentioned in a CBS News article.

The lawsuit is positioned within a broader context of increasing skepticism towards DEI initiatives, particularly following actions taken by the Trump administration, which emphasized a rollback of such policies. Following Trump's executive orders, a wave of companies—including Google and Amazon—have re-evaluated their DEI commitments. According to Newsweek, experts are watching closely, as this legal battle could set a precedent for how corporations approach diversity in hiring going forward.

The case against Starbucks underscores a vital intersection of corporate policy and socio-political discourse, raising essential questions about the legality and morality of DEI practices in an increasingly polarized environment. As reported in the Al Jazeera, Missouri's actions reflect a growing trend among Republican states to scrutinize corporate diversity measures, emphasizing how these initiatives are perceived in light of civil rights debates and market accessibility.

This case is Missouri ex rel Bailey v Starbucks Corp, filed in the U.S. District Court for the Eastern District of Missouri, with the case number No. 25-00165. As it unfolds, the outcome may redefine the landscape of corporate governance concerning diversity and inclusivity initiatives in the United States.