Starbucks Corp. agreed on Thursday, September 17, 2026, to settle a lawsuit filed by the state of Florida that alleged the company's diversity, equity, and inclusion (DEI) policies violated state anti-discrimination laws. Under the terms of the settlement, the coffee chain pledged not to use race- or sex-based quotas or preferences in hiring, pay, or promotion decisions. The company also agreed to pay $1 million to the Florida Department of Legal Affairs to cover litigation costs.
Florida Attorney General James Uthmeier filed the lawsuit on December 10, 2025, accusing Starbucks of violating the Florida Civil Rights Act. The state specifically challenged numerical diversity targets announced by the company in 2020, which sought to have people of color hold 30% of corporate positions and 40% of retail and manufacturing roles by 2025. The state also alleged that Starbucks tied executive compensation to diversity goals and maintained mentorship programs that were limited by race.
While Starbucks denied any wrongdoing, the settlement requires the company to submit annual certifications of compliance for the next four years. Starbucks also agreed to refrain from participating in organizations that require increasing the racial diversity of corporate boards. Although the lawsuit was filed in Florida, a spokesperson for Uthmeier's office stated that the commitment to refrain from race- or sex-based preferences applies to Starbucks' operations nationwide.
The settlement affects the employment practices governing Starbucks' U.S. operations. By agreeing to move away from race- and sex-based preferences and quotas, the company will change the criteria used for hiring, promotions, and executive bonuses. For individual workers, the company must now certify annually for four years that its practices comply with the agreement, which Uthmeier stated ensures that "DEI can never be an excuse to violate civil rights."
The financial impact includes a $1 million payment for legal costs, a figure lower than the tens of millions in civil penalties Florida originally sought. Similar settlements have been reported involving other companies; for example, the Department of Justice recently reached a $25 million settlement with Accenture and a $21.5 million settlement with Deloitte over allegations regarding demographic goals in hiring and staffing.
While a federal judge dismissed a similar lawsuit against Starbucks in Missouri in February 2026 because the state failed to identify a worker harmed by the policies, Missouri is currently appealing that decision. Starbucks stated it will remain focused on providing career opportunities for its "partners," the term it uses for its employees, while adhering to the legal constraints of the agreement.