Waszak said that she was fired after questioning the safety and functionality of a proprietary equipment system known as the Siren System, which Starbucks told investors would dramatically increase productivity.
The lawsuit claims that “after further testing, Waszak learned Siren had several defects that created health and safety risks.” Indeed, she insists that she flagged what she thought would be a disaster for the company, adding that Waszak “realized that Siren might never be profitable and could lead to deep financial losses for the company.”
She alleges that Starbucks conducted a live demonstration of Siren for a large group of district managers and regional directors at the Tryer Center in October 2022. During the demonstration, “maggots dropped out of the overhead milk dispenser and fell onto the counter and beverages.” The complaint states that Waszak “later learned that the maggots had bred in Siren’s milk dispenser because it was improperly cleaned.”
Her complaint names her superior, Vice President of Global Equipment Natarajan Venkatakrishnan as allegedly resisting her criticism. In an August 2023 email from Waszak, titled “Mitigating Risks in Store Tests,” she reportedly told her team to prioritize customer and staff safety. Venkatakrishnan allegedly pushed back, warning her the email “could become part of a lawsuit.”
Starbucks insists that she was not fired for such allegations but “was separated from the company after an investigation into allegations that her conduct violated Starbucks workplace conduct policies.” The company said it looked forward to presenting “evidence in court.”
The maggot allegation is particularly damaging to a beverage and food company. The specific factual assertions made with regard to the demonstration should be relatively easy to confirm or refute in discovery.
The controversy raises an interesting tort question over business defamation or, in some states, product disparagement. While filings are generally privileged for defamation purposes, Waszak may have made these allegations outside the litigation.
However, in 2022, Washington enacted ESHB 1795, which generally prohibits nondisclosure and non-disparagement provisions in employer-employee agreements. The law voids any nondisclosure or non-disparagement provisions that would conceal or prevent the disclosure of conduct that an employee reasonably believes under state, federal or common law to be illegal discrimination, harassment, retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy.