Bank of America sued over mandatory arbitration for employee disputes
BAC•A fired financial adviser sued Bank of America, challenging its 2024 mandatory arbitration policy and alleging it breached commitments made in a $160 million racial bias settlement in 2013. The bank said arbitration policies using JAMS are routinely upheld in court.
1. Policy challenged in court
Katherine Mackey filed a complaint in Manhattan federal court challenging a November 2024 policy that purportedly requires Bank of America and Merrill Lynch employees to arbitrate many claims, including discrimination and harassment, and waive the right to sue in court or pursue class actions. She argues the policy negated Merrill Lynch’s commitments in its 2013 settlement with hundreds of Black brokers who alleged bias in pay, promotions and account allocations.
2. Adviser’s allegations
Mackey said she joined Merrill Lynch’s program for aspiring financial advisers in 2023, at age 65, and that younger male colleagues and supervisors discriminated against and harassed her because of her gender and age. She said she missed production goals, was given until summer 2025 to catch up, then had the deadline accelerated and was fired in February 2025. She wants to void the policy and move her claims from arbitration to federal court.
3. Bank response
Bank of America said Congress and the Supreme Court have long encouraged arbitration for employment disputes, and that JAMS arbitration policies are routinely upheld in court. The 2013 settlement was for $160 million.
