The Phoenix Suns are facing intense criticism for their handling of workplace disputes after introducing a new employee policy that requires arbitration for most legal claims.
The move comes while the organization is already battling several lawsuits from employees who allege discrimination, retaliation, and wrongful termination. In late May, team staff were instructed to review and sign an updated handbook that arrived in two separate sections.
Part A, consisting of 50 pages, repeated much of what had already been outlined in the 2023 version of the handbook. It detailed commitments to diversity and equity, outlined workplace conduct standards, and listed various employee benefits.
The controversy centers on Part B of the handbook, which stretched four pages and was labeled “Confidential information, Intellectual Property, and Dispute Resolution Agreement.”
This section was described as legally binding, and employees were directed to an outside website to confirm their agreement. According to the documents, acceptance of these terms was “a condition of your offer of employment and/or continued employment.”
The dispute resolution language stated that both the Suns and employees would “agree all legal disputes and claims identified below shall be determined exclusively by final and binding individual arbitration.”
The requirement applied even after employment ended. Allegations of workplace discrimination, the very issue at the heart of multiple pending lawsuits, were singled out for confidential mandatory mediation before being sent to arbitration. Only disputes involving violations of federal or state laws were carved out as exceptions.
Attorneys who reviewed the policy without ties to the team acknowledged that arbitration clauses are common but said this rollout raises red flags.
“They have been, and are becoming, close to industry standard in corporate America,” noted San Francisco-based attorney Patrick Hammon.
“What makes this situation more unique is that it appears that these new terms are being imposed upon employees mid-stream. Courts [in Arizona and elsewhere] will almost always require such modifications to be supported by ‘consideration’ — meaning the employees need to be getting something, anything, really in exchange for the change to the parties’ legal relationship.”
Hammon compared it to an agreement where one side unexpectedly changes the terms without providing anything in return. He explained that Arizona courts typically reject the argument that simply keeping someone employed is enough to justify significant changes to contractual obligations.
Lawyers representing former employees of the Suns have condemned the organization for pushing staff into signing away rights during an already tense period.
“From the beginning, we have said we will hold the Phoenix Suns accountable for discrimination and retaliation. 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,” said attorney Cortney Walters, who represents several plaintiffs suing the team. She added, “Mandatory arbitration denies people their day in court and hides systemic problems from the public. This latest move is not an isolated decision. It is part of a continuing pattern of silencing employees rather than confronting discrimination. The Suns’ actions make clear that protecting their image matters more to them than protecting people.”
The organization, however, defended the handbook revisions.
“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,” said Stacey Mitch, the Suns’ Senior Vice President of Communications.
Yet ESPN has confirmed that its own employees are not required to agree to mandatory arbitration and that Disney’s handbook does not contain such provisions.
The decision to impose new conditions on workers comes as the Suns deal with six lawsuits since October 2024. Five of these cases were filed by current or former employees who allege discrimination, harassment, retaliation, and wrongful termination. Another lawsuit, filed in August, comes from two minority owners who say majority owner Mat Ishbia has blocked them from accessing internal records. The Suns have denied wrongdoing in all cases.
It is not yet clear how many employees agreed to the new handbook, but the timing of the policy has added to the skepticism surrounding the franchise.
