Bailey’s lawsuit said that the U.S. Supreme Court ruled in 2023 that federal law does not allow “differential treatment based on race,” referencing the court’s decision against affirmative action in admissions decisions at colleges. However, the attorney general said in his lawsuit that the coffee chain opted to require “outright race- and sex-based discrimination” in its hiring practices, claiming that this led customers to pay more and experience longer wait times for their coffee.

“Just two years ago, the Supreme Court ruled that federal law prohibits discrimination based on race,” Bailey wrote on X. “This principle applies not only to college admissions but also to employment decisions. Starbucks enforces race-and-sex-based hiring practices, unlawfully segregates employees, and provides exclusive training and employment benefits to select groups in violation of anti-discrimination laws.”

Just two years ago, the Supreme Court ruled that federal law prohibits discrimination based on race.

This principle applies not only to college admissions but also to employment decisions.

— Attorney General Andrew Bailey (@AGAndrewBailey) February 11, 2025

The lawsuit said that one of Starbucks’s DEI goals in 2021 was to have 40% of its retail roles held by black, Indigenous, and people of color and 55% of these roles held by women by 2025 in the United States. The coffee chain opted to “soften” the language of its goals in 2023 “as merely ‘aspirational,’” but these goals were nonetheless “based on unlawful bases,” according to the lawsuit.

Starbucks pushed back against the accusations, with a spokesperson calling the allegations “inaccurate.”

“We disagree with the attorney general and these allegations are inaccurate,” the spokesperson said. “We are deeply committed to creating opportunity for every single one of our partners (employees). Our programs and benefits are 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.”

X owner Elon Musk, meanwhile, applauded Bailey’s lawsuit, writing “great!” in a reply to the attorney general’s comment on X.

Great!

— Elon Musk (@elonmusk) February 11, 2025

Bailey’s lawsuit targeting DEI comes as many other retailers opt to drop DEI practices, with Google being the most recent. Other retailers that took similar action include Target, Walmart, McDonald’s, and Tractor Supply Company.

President Donald Trump, shortly after his second inauguration, signed an executive order aimed at eliminating all DEI initiatives within the federal government. Rep. Michael Cloud (R-TX) and Sen. Eric Schmitt (R-MO) have since introduced a bill to enshrine Trump’s order.