Starbucks settles Florida lawsuit claiming diversity policies were illegal

Starbucks agreed on Thursday to settle a discrimination lawsuit by the state of Florida, pledging not to adopt race- or sex-based quotas or preferences in hiring, promotion and pay decisions.

Starbucks and Florida's Republican Attorney General James Uthmeier jointly announced the settlement of a lawsuit filed by the state last December.

Florida accused the company of violating state anti-discrimination law, including by setting racial quotas and tying executive compensation to meeting diversity goals.

Starbucks denied wrongdoing and said in a statement it would focus "on offering great jobs and career opportunities to our partners who wear the green apron."

Under the settlement, Starbucks agreed to comply with Florida law, pay $1 million to the Florida Department of Legal Affairs to cover litigation costs, and submit annual certifications of compliance for four years. The company also will not participate in any organizations that require increasing the racial diversity of its board of directors.

A spokesperson for Uthmeier's office said the agreement applies nationwide.

Uthmeier said in a statement the settlement ensures that Starbucks' employment policies and practices comply with Florida's anti-discrimination laws. "DEI can never be an excuse to violate civil rights," he said.

The case is part of broader efforts by many Republican officials, including in President Donald Trump's administration, to eliminate diversity, equity and inclusion programs from the private sector, government and education.

A federal judge dismissed a similar lawsuit in February by the Missouri Attorney General's office targeting Starbucks' alleged diversity policies. The state is appealing.