Bank of America sued over mandatory arbitration for employee disputes

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1. 3h ago

   Bank of America sued over mandatory arbitration for employee disputes

   Bank of America is being sued by a fired financial adviser who claims the bank backed out of a 2013 racial bias settlement by requiring employees to arbitrate discrimination claims. The plaintiff, Katherine Mackey, challenges a November 2024 policy that mandated arbitration through JAMS for many claims, including discrimination and harassment. This policy allegedly forces employees to "forever waive" their right to sue in court or pursue class actions.

   Why it matters

   The lawsuit is significant because it questions Bank of America's adherence to a previous settlement and its current handling of employee disputes. The 2013 racial bias settlement had included a commitment not to require employees to arbitrate discrimination claims. This case may have implications for how financial institutions handle employment disputes and their obligations under previous agreements.

   What is confirmed

   • Bank of America was sued by a fired financial adviser over its mandatory arbitration policy for employee disputes.
   • The plaintiff, Katherine Mackey, claims the bank backed out of a 2013 racial bias settlement by requiring employees to arbitrate discrimination claims.
   • The policy in question was implemented in November 2024 and requires arbitration through JAMS for many claims, including discrimination and harassment.
   • The policy allegedly forces employees to "forever waive" their right to sue in court or pursue class actions.

   What to watch next

   • The court's decision on the lawsuit
   • Bank of America's response to the allegations
   • The impact of the lawsuit on Bank of America's policies and practices
   Sources used for this update (11)

   1. seekingalpha.com — Patient Capital Management Q3 2026 Commentary
   2. www.marketscreener.com — Global Stocks Fall on Higher Oil Prices, AI Pullback | MarketScreener
   3. www.courvoisier.com — Privacy Policy | Courvoisier
   4. Reuters — Bank of America sued over mandatory arbitration for employee disputes
   5. AdvisorHub — Ex-Merrill Trainee Challenges Firm’s Mandatory Arbitration Policy
   6. SuaraGarut.ID — Former Adviser Sues Bank of America Over Arbitration Policy
   7. Seeking Alpha — Bank of America sued over mandatory arbitration policy for employees - report (BAC:NYSE)
   8. TOKENPOST — Fired Adviser Sues Bank of America Over Arbitration Policy
   9. www.wysl1040.com — Bank of America sued over mandatory arbitration for employee disputes - WYSL NewsPower 1040
   10. piqmarkets.com — Bank of America sued over mandatory arbitration for employee ...
   11. srnnews.com — Bank of America sued over mandatory arbitration for employee ...
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