Starbucks resolves Florida DEI lawsuit with blockbuster agreement

EXCLUSIVE - Starbucks will pay Florida $1 million and will not use race-and sex-based goals, quotas and preferences in employment practices companywide under a sweeping settlement ending the state's civil rights lawsuit against the coffee giant.

Florida Attorney General James Uthmeier's office confirmed to Fox News Digital that the agreement applies to all Starbucks operations nationwide, not just the company's locations in Florida.

"Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character - not race or sex," Uthmeier told Fox News Digital. "This resolution ensures that Starbucks' policies and practices fully comply with Florida's civil rights laws. DEI can never be an excuse to violate civil rights."

Under the agreement, Starbucks committed to complying with the state civil rights law, which prohibits race and sex-based preferences in hiring, promotions, pay, executive compensation, mentorship programs, supplier selection and board composition.

The company also agreed it will not participate in organizations that require it to increase the racial diversity of its board of directors.

Starbucks' chief legal officer will be required to submit annual certifications of the company's continued compliance for four years. The company will also pay $1 million to the Florida Department of Legal Affairs to reimburse the office for the time, expenses and costs of bringing the case.

"We're pleased to have resolved this matter without admission of wrongdoing and appreciate the constructive engagement of the Attorney General's Office throughout this process," Pilar Ramos, executive vice president and chief legal officer of Starbucks said. 

"We will continue to focus on offering great jobs and career opportunities to our partners who wear the green apron, while making a positive impact on the communities we serve in Florida and around the world."

The agreement includes no admission of liability or wrongdoing by Starbucks.

The December complaint pointed to goals Starbucks announced in 2020 to have people of color fill 40% of retail and manufacturing jobs and 30% of corporate positions by 2025.

It also alleged the company paid certain employees more than workers of other races with the same experience and skills and, before March 2024, tied executive bonuses to diversity goals.

For fiscal year 2024, the lawsuit alleged that bonus criteria included executives mentoring Black, Indigenous and other employees of color, holding monthly meetings with mentees and keeping retention among those workers above a stated threshold.

The complaint further alleged that Florida Starbucks employees and job applicants contacted the attorney general's office and reported feeling excluded or humiliated because they were White. Uthmeier accused the company of "systemic discrimination" against workers it considered "non-diverse."

"Starbucks made DEI more than a slogan," Uthmeier said when the lawsuit was announced. "They turned it into a mandatory hiring and promotion system based on race."

The state initially sought $10,000 in damages for each alleged instance of racial discrimination against a Florida resident, an amount Uthmeier's office said could have reached tens of millions of dollars or more. Starbucks operates more than 900 stores in Florida, according to the complaint.

A federal judge dismissed that case in February 2026, finding that Missouri had not identified a resident who was actually harmed by the policies. The state appealed the ruling.

Starbucks previously disputed Florida's allegations, telling Fox News Digital after the lawsuit was filed that its programs and benefits were open to everyone and lawful.

"Our hiring practices are inclusive, fair and competitive and designed to ensure the strongest candidate for every job, every time," a company spokesperson said at the time.

Fox News Digital's Rachel del Guidice and Anders Hagstrom contributed to this report.

EDITOR'S NOTE: This story was updated to reflect Starbucks' commitment to not using race-and sex-based goals, quotas and preferences in employment practices companywide.