URGENT UPDATE: The Phoenix Suns have reportedly instructed employees to sign a new arbitration agreement or risk losing their jobs, a move that comes amid multiple ongoing lawsuits alleging discrimination and retaliation. Sources confirm that employees received this notification via email on May 27, highlighting the urgency of compliance with the updated employee handbook.
In a climate already fraught with legal challenges, the team has introduced a two-part handbook update that requires employees to acknowledge new contractual obligations within just three days. The first part reiterates company policies on diversity, equity, and inclusion, while the second part introduces a four-page “Confidential Information, Intellectual Property, and Dispute Resolution Agreement”. This new requirement has raised eyebrows, as it mandates that employees submit all legal disputes exclusively to arbitration, bypassing the courts.
The implications of this move are significant. By limiting employees’ rights to sue, the Suns may be attempting to shield themselves from the ongoing wave of legal challenges they face—six lawsuits since October 2024, including claims of discrimination and wrongful termination. As reported, the latest lawsuit involves minority owners from the previous ownership under Robert Sarver, alleging that current owner Mat Ishbia has denied access to internal records.
Cortney Walters, an attorney representing several former employees, criticized the Suns’ approach, stating, “
Instead of addressing these issues, the organization is pressuring employees to sign away their rights with only three days’ notice or risk losing their jobs.
” Walters emphasized that this tactic aims to silence employees rather than confront systemic problems within the organization.
Legal experts weigh in, noting that while arbitration agreements are becoming standard in corporate America, imposing them mid-employment raises ethical concerns. “Such modifications must be supported by ‘consideration’—employees need to gain something in return,” said Patrick Hammon, a corporate litigator. “In Arizona, courts generally do not view ‘continued employment’ as sufficient consideration.”
The Suns’ Senior Vice President of Communications, Stacey Mitch, defended the policy, stating it is consistent with practices at many large organizations, including Disney and other NBA teams. However, critics argue that this policy effectively shields the team from accountability, as mandatory arbitration can obscure public awareness of internal issues.
As of now, it remains unclear how many employees have complied with the new agreement. Legal advocates are closely monitoring the situation, emphasizing the need for transparency and fair treatment of employees. With the pressure mounting, all eyes are on the Suns as they navigate these turbulent waters, balancing their organizational image against the rights of their workforce.
This developing story highlights the ongoing battle between corporate policies and employee rights, raising critical questions about fairness and accountability in the workplace. Keep an eye on this situation as it continues to unfold.