Suns Required Existing Workers to Add Arbitration Clause to Their Employment Agreements

Fans and reporters pay close attention to the contracts that the Phoenix Suns and other NBA teams offer to players. Total compensation in these agreements can exceed $100 million over the life of the deal. Professional basketball teams also have other employees who perform a wide range of jobs at much lower salaries. Following several employment law claims against the Suns, the team adjusted agreements offered to non-playing workers. 

In September 2025, the Suns issued an update to their employee handbook requiring current workers to agree to a mandatory arbitration clause within three days on a “take-it-or-leave-it” basis. This was apparently presented as a mandatory condition of continued employment and specifically covers actions alleging wrongful termination, workplace discrimination and unlawful retaliation. Arbitration provisions are common in employment agreements for many reasons, such as: 

• Increased efficiency — Arbitration typically requires much less time, expense and effort than going to trial. This minimizes disruption to the business and allows both parties to move forward following a resolution.  
• Confidentiality protections — Mandatory arbitration keeps sensitive workplace disputes out of local newspapers and public records, which can be especially important for high-profile organizations such as NBA teams.
• Streamlined claims process — Setting a single, private forum simplifies how employment claims get evaluated and resolved.

Various federal and state rules apply to employment arbitration clauses, and there are situations where continued employment might not be held to constitute valid consideration for giving up one’s right to sue. Even where permitted by law, updating contracts for current staff requires thoughtful planning. Poorly drafted agreements might backfire as the business must first defend the validity of the revised agreement and then deal with the merits of the case. 

Though companies generally draft dispute resolution agreements, it is vital to remember that these documents are subject to the same legal principles as other contracts. Acknowledging receipt of an employee handbook may not have the same legal effect.

If you’re considering creating a mandatory arbitration agreement for your employees, it is important to protect your organization before a dispute arises. Call The Law Offices of Donald W. Hudspeth P.C.  today at 866-696-2033 or contact us online to schedule a consultation with an experienced attorney who can review and update your workforce agreements in accordance with the pertinent laws.