NEW YORK, NY – A federal magistrate judge has ordered a former Starbucks employee’s disability discrimination lawsuit into private arbitration, finding that the worker electronically agreed to resolve all employment disputes outside of court as a condition of being hired.
In a decision filed January 20, 2026, U.S. Magistrate Judge Barbara Moses ruled in Moody v. Starbucks Corporation that plaintiff Amari J. Moody’s claims must proceed before an arbitrator under the company’s Mutual Arbitration Agreement. The court also dismissed Moody’s independent claim under the Americans with Disabilities Act (ADA) for failure to exhaust administrative remedies with the Equal Employment Opportunity Commission.
Moody, who filed the case pro se in October 2025, alleged that Starbucks violated the ADA, the Family and Medical Leave Act (FMLA), and the Employee Retirement Income Security Act (ERISA) by terminating him in August 2025 while he was still on approved medical leave. He also accused the company’s human resources staff of concealing evidence related to his termination.
Court records show that Moody first worked for Starbucks between 2019 and 2023 and was rehired in April 2024 after applying online. As part of his onboarding process through Starbucks’ digital hiring platform, he signed an arbitration agreement requiring that all employment-related disputes be resolved through binding arbitration. The company produced electronic records showing that Moody logged in and signed the agreement on April 8, 2024.
Judge Moses held that this agreement was valid and enforceable. Citing federal arbitration law, the court found that Moody knowingly accepted the terms and could not avoid arbitration simply by filing suit in federal court. The judge stayed the case pending completion of arbitration proceedings.
Starbucks had also moved to dismiss the lawsuit outright, but the court ruled that while the ADA claim was barred for lack of administrative exhaustion, the remaining FMLA and ERISA claims would proceed before an arbitrator.
Key Points: Judge orders Starbucks disability discrimination case into arbitration – New York
- Magistrate Judge Barbara Moses ruled that former employee Amari J. Moody must arbitrate his employment claims against Starbucks.
- The court found that Moody electronically signed a valid arbitration agreement during the hiring process.
- Moody’s ADA claim was dismissed for failure to exhaust administrative remedies, while his FMLA and ERISA claims will proceed in arbitration.