Key takeaways:

• Missouri has sued Starbucks, alleging discriminatory DEI hiring practices.
• The lawsuit claims that Starbucks' policies have resulted in higher prices and slower services for customers.
• Starbucks denies the allegations, asserting its commitment to fair hiring practices.

Starbucks is facing a lawsuit from the state of Missouri, with accusations of using its diversity, equity, and inclusion (DEI) policies as a means to systematically discriminate based on race, gender, and sexual orientation. Missouri Attorney General Andrew Bailey filed the complaint on February 11 in federal court, asserting that Starbucks' approach to hiring has not only favored specific demographics but has also led to a decrease in service quality and increased prices for consumers.

According to the Reuters, the lawsuit specifically claims that Starbucks ties executive compensation to the successful achievement of racial and gender-based hiring quotas. This practice reportedly undermines the principle of merit-based hiring, which critics argue should be the sole criteria for job recruitment.

Attorney General Bailey remarked that by focusing on achieving specific diversity metrics, Starbucks effectively reduces opportunities for the most qualified candidates, resulting in challenges for Missouri residents who are seeking employment. “Missouri consumers,” Bailey stated, “pay higher prices and wait longer for services at Starbucks than if the Seattle-based chain employed the most qualified workers.”

In response, Starbucks issued a statement asserting that the claims made by Bailey are inaccurate and emphasized its commitment to providing opportunities for all employees. The company insists that its hiring practices are inclusive and designed to select the best candidates for each position each time. "Our programs and benefits are open to everyone and lawful," the company affirmed.

This legal action arises against the backdrop of broader social and corporate debates concerning DEI policies, especially as many companies have recently scaled back on such initiatives. As reported by Al Jazeera, firms like Goldman Sachs and Google have also begun to retract their DEI programs in response to political and public pressure.

The Missouri lawsuit points to Starbucks' diversity policies adopted in the wake of nationwide unrest following the murder of George Floyd, arguing they act as a mask for unlawful discrimination. The case titled *Missouri ex rel Bailey v. Starbucks Corp* seeks to force the company to amend its hiring practices and compensate affected employees.

In earlier legal struggles, a federal judge dismissed a similar shareholder lawsuit that challenged Starbucks' DEI policies, marking a contentious landscape for the company as it strives to balance public perception with legal compliance.

Despite Starbucks' commitment to community and inclusion, this litigation poses potential implications for its corporate culture moving forward, as the case unfolds in a climate of heightened scrutiny over workplace equity practices.

For more details, visit the CBS News report.