Starbucks reaches agreement with EEOC over alleged racial bias claims

Starbucks Corp. has resolved allegations brought by the Equal Employment Opportunity Commission of alleged racial bias in the promotions of store employees (based on workforce data from 2007 to 2011).

The coffee giant revealed the agreement, which was reached earlier this year, in its third Civil Rights Assessment, which was conducted by Covington & Burling under the leadership of former U.S. Attorney General Eric Holder, Jr. The report noted that while Starbucks’ internal analysis did not support the allegations, the company has committed to implement several enhancements to ensure that every one of its employees has an equal opportunity to advance within Starbucks and thrive professionally. 

“While we do not know what prompted the EEOC allegations and our analysis of this data did not reveal systemic discrimination in promotions, we know we can improve transparency around promotion opportunities,” Starbucks CEO Kevin Johnson wrote in a letter to employees. “The agreement is not only the right thing for partners, it has also led us to focus more resources on structural changes necessary to support partners’ career progressions and ensure that every partner has the opportunity to learn about promotion opportunities.”

In line with its agreement with the EEOC, Starbucks will roll out an enhanced application tracking system in May that will include all retail job postings and include ways to track hiring data.  

Also, store managers will no longer be able to promote workers outside of the formal promotion framework — only internal and external candidates who apply through the established process may be considered for each open position. The company is rolling out new training for leadership involved in hiring decisions, including new interview guides.