Starbucks ignored maggots, safety concerns, ex-VP lawsuit claims
Published in Business News
SEATTLE — A former Starbucks vice president is suing the Seattle-based coffee giant over wrongful termination and sex discrimination allegations.
Janice Waszak filed the complaint Monday in King County Superior Court, alleging that her employer illegally canned her after she raised concerns about the safety and functionality of an equipment system.
Waszak, who oversaw the testing of the system, claimed maggots were found in a milk dispenser, and a manufacturing defect sparked a fire. She alleges that raising these concerns — not a separate issue with an employee — led to her termination.
They should have given her an award for standing up for what was the truth. Instead, they fired her," said Michael C. Subit, Waszak's attorney, in a phone interview.
He and Waszak's other lawyer, Catherine Sellers, of Seattle employment law firm Frank Freed Subit & Thomas, said in the complaint that their client also endured sex discrimination when Starbucks "allegedly terminated her for interpersonal behaviors for which it has not discharged male employees."
Starbucks refuted the allegations Tuesday.
"Safety is a top priority for Starbucks, and these claims are entirely without merit," a company spokesperson said in a statement.
"Ms. Waszak was separated from the company after an investigation into allegations that her conduct violated Starbucks workplace conduct policies. We look forward to presenting our evidence in court."
Subit said Waszak had to file a lawsuit after failing to reach a resolution with the company. She is seeking damages, including lost wages and attorneys’ fees.
Lawsuit details
Waszak, a King County resident, worked at Starbucks for around two decades, starting as a brand manager in 2004.
By 2016, she served as the director of concept innovation, overseeing the development and testing of new initiatives.
In 2018, she started reporting to Natarajan Venkatakrishnan, who was then vice president of global equipment. A few years later, his equipment engineering team allegedly spearheaded the Siren System, a proprietary equipment system focused on boosting productivity and profit at coffeehouses.
After Venkatakrishnan presented the Siren System to senior executives in early 2022, two leaders allegedly criticized his fiscal projections. Months later, neither of the two executives still worked at the company, according to the lawsuit.
"Venkatakrishnan later bragged to Waszak that he had brought about the
termination of both executives because they had spoken out against him," the complaint details.
By April 2022, testing of the Siren System fell under Waszak's domain.
In a news release, Starbucks described the system as "a series of equipment and technology improvements unveiled in 2022 to make crafting beverages and food more straightforward for partners."
Waszak's lawyers said in the complaint that the system "intended to enable baristas to make any beverage in 40 seconds or less, and in doing so, significantly increase Starbucks’s efficiency and revenue."
But during testing, Waszak claimed that maggots had infested the system's milk dispenser due to improper cleaning, and larvae fell out of the machine during a demonstration for Starbucks leadership.
"Baristas flicked the maggots away to avoid attendees seeing them," per the lawsuit.
Waszak allegedly learned from company employees that they thought the system's design "was too complicated" to be properly sanitized.
She said she informed Venkatakrishnan about health and safety risks to patrons and employees, but he proceeded with implementation plans for the Siren System.
In 2023, she was promoted to a vice president position, in which Waszak allegedly oversaw testing of the Siren System in coffeehouses.
Starbucks continued the rollout, though Waszak cited another alleged problem with the Siren System: a milk dispenser catching fire because of a manufacturing defect. She claimed that she approached Venkatakrishnan and other leaders at the company about the risks.
Tensions between her and her boss allegedly worsened.
She met with an HR manager at the company to discuss the problems, including Venkatakrishnan allegedly yelling at her, criticizing her and bringing her to tears, the lawsuit said.
Waszak claimed she ultimately filed a complaint against Venkatakrishnan in December 2023, and, later that month, she was fired for violating the company's anti-bullying and harassment policy.
The lawsuit says, after she was informed of her termination, Waszak learned that an employee complained about her, citing criticisms and vague instructions.
She allegedly found out that an ethics and compliance officer at Starbucks had investigated the claim, and the officer determined that Waszak hadn't contributed to a hostile work environment and should receive a warning instead.
However, Waszak was terminated.
"We don't believe the reason they gave," Subit said, adding that Waszak "infuriated her boss by not backing down, and he got rid of her."
The lawsuit claims sex discrimination because "we don't believe that men were held to this standard," Subit said, referring to terminating Waszak allegedly over the issue with the employee.
Venkatakrishnan continues to work for Starbucks as a senior vice president, according to his LinkedIn account.
The Siren System led to the formal introduction of the Siren Craft System, a project that began in 2023 and was formally introduced to the public the next year.
"The role of Siren Craft System is really about helping to capture the demand that we have by shortening customer wait time while elevating connection, elevating the quality of our coffee, and celebrating the craft of our baristas each and every day, Sara Trilling, former executive vice president and president of Starbucks North America, said in a statement at that time.
Over 1,100 U.S. coffeehouses utilized the Siren Craft System by the end of May 2024.
Under Starbucks CEO Brian Niccol, who took over in September 2024, the system's deployment was curtailed. It is unclear how many coffeehouses continue to use the Siren Craft System.
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