Phoenix Suns Ordered Employees to Accept Arbitration Clause to Keep Jobs, Sources Say
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The Phoenix Suns instructed staff members on May 27 to sign a new agreement that restricts their ability to sue the organization over workplace issues or risk losing their positions, multiple team sources told ESPN.
According to documents reviewed by ESPN, employees received an email announcing an “updated employee handbook” divided into two sections. Part A, spanning 50 pages, largely mirrored topics in the 2023 handbook—such as diversity policies, arena rules, and benefits. Part B, a four-page addendum titled “Confidential Information, Intellectual Property, and Dispute Resolution Agreement,” was new and described as a condition of both current and future employment.
The addendum states that “all legal disputes and claims” covered by the agreement will be resolved exclusively through binding individual arbitration, with mandatory confidential mediation as the first step for employment-discrimination matters. The provision remains in effect even after an employee leaves the organization, the documents say. Employees were given three days to review and accept both sections via an external website.
Several independent attorneys told ESPN that such clauses are increasingly common but may face legal challenges when introduced mid-employment without additional compensation. “Courts generally will not view ‘continued employment’ as sufficient consideration,” San Francisco-based litigator Patrick Hammon said.
Attorney Cortney Walters, who represents former Suns staffers suing the team for discrimination and retaliation, called the process “intimidating and distracting,” arguing that mandatory arbitration “denies people their day in court.”
In a statement to ESPN, Suns Senior Vice President of Communications Stacey Mitch said, “This policy is standard at most large organizations including Disney, ESPN, and many other NBA teams. This policy does not result in the waiver of claims.” ESPN told the outlet it does not require new hires to agree to mandatory arbitration, and no such clause appears in the Disney employee handbook.
The Suns have faced six lawsuits since October 2024. The most recent, filed in late August, comes from two minority owners who allege current majority owner Mat Ishbia has blocked access to internal records. Five other suits by current or former employees accuse the franchise of discrimination, retaliation, harassment, and wrongful termination. The team has denied all allegations.
Source: ESPN
