The Missouri attorney general's office is suing Starbucks, alleging that the coffee chain's diversity, equity, and inclusion policies are actually "race-and-sex based hiring practices" that violate the state’s laws.
The lawsuit was filed on Tuesday by Missouri Attorney General Andrew Bailey, according to CBS News. It takes aim at Starbucks’ DEI hiring policies, calling them “mere pretext for its actual commitment to unlawful discrimination,” and alleging that order times are taking longer because the company isn’t hiring the best candidates.
The Missouri attorney general's legal filing comes in the wake of President Donald Trump’s executive order banning DEI programs across the federal government. That order also encourages the U.S. attorney general to "encourage the private sector to end illegal discrimination and preferences, including DEI."
Some major companies have scaled back their DEI initiatives voluntarily, including Ford, Google, McDonald's, Meta, Target, and Walmart.
Starbucks issued a response to the lawsuit to CBS News, calling the allegations "inaccurate."
"We disagree with the attorney general, and these allegations are inaccurate. We are deeply committed to creating opportunity for every single one of our partners [employees]," the statement said. "Our programs and benefits are open to everyone and lawful."
Starbucks argued that "our hiring practices are inclusive, fair, and competitive, and designed to ensure the strongest candidate for every job, every time."
While some customers have complained about the wait times at Starbucks, the Missouri attorney general didn’t provide concrete evidence in his lawsuit that those delays are the fault of staff hired under DEI policies.
The complaint alleges that unspecified Missourians have been harmed by Starbucks' DEI initiatives.
"Starbucks' policies harm the many Missourians whom work, or would like to work, at Starbucks, but have been, are being or will be discriminated against as future victims on the basis of their race, sex, or inclusion in other protected groups," the lawsuit says.
It's unclear whether or not the litigation will change any of Starbucks' operating practices under relatively-new CEO Brian Niccol.
The lawsuit comes as Disney announced internally that it will be shifting away from its DEI initiatives to prioritize its business goals and company values, according to Axios.
An internal memo written by chief human resources officer Sonia Coleman said that DEI will be playing less of a role when it comes to compensation evaluations.
"Beginning this fiscal year, we are adding a new 'Talent Strategy' factor to our executive compensation planning. This factor will assess how leaders uphold our company values, incorporate different perspectives to drive business success, cultivate an environment where all employees can thrive, and sustain a robust pipeline to ensure long-term organizational strength," the memo, which was confirmed by Axios, said. "This new factor represents an evolution of important concepts in the former Diversity & Inclusion OPF and will be used alongside our other two OPFs, 'Storytelling & Creativity' and 'Synergy.'"
In addition, Disney is axing Reimagine Tomorrow, which is a digital content hub started in 2021 intended to showcase underrepresented creators.
