Bank of America sued over mandatory arbitration for employee disputes

Key facts

• Bank of America faces a lawsuit over its mandatory arbitration policy for employee disputes.
• The lawsuit claims the policy violates a 2013 racial bias settlement.
• The policy requires employees to use JAMS for claims including discrimination and harassment.
• The fired financial adviser, Katherine Mackey, alleges gender and age discrimination.
• Mackey was fired in February 2025 after her performance deadline was accelerated.

Bank of America is facing a lawsuit from a former financial adviser, Katherine Mackey, who alleges the bank reneged on a 2013 settlement agreement by implementing a mandatory arbitration policy for employee disputes. Mackey claims the policy, introduced in November 2024, forces employees to arbitrate claims including discrimination and harassment, thereby waiving their right to sue in court or pursue class actions. This contradicts promises made in a 2013 settlement where Bank of America, then Merrill Lynch, agreed not to require arbitration for discrimination claims from hundreds of Black brokers who alleged bias. Mackey, who joined Merrill Lynch in 2023, asserts she faced gender and age discrimination from colleagues and supervisors, leading to her termination in February 2025 after her performance deadline was accelerated.