Court Sends Banco Popular Bias Case to Arbitration

A federal judge on St. Croix has suspended an employment discrimination lawsuit against Banco Popular de Puerto Rico and directed the case into binding arbitration, ruling that a contract Leslie Hendrickson signed when she started work at the bank in 2005 requires disputes to be settled outside court.

U.S. Magistrate Judge Emile A. Henderson III issued the order on October 5 after Banco Popular sought to move the case. The ruling does not address whether Hendrickson's allegations of discrimination are valid or whether the bank broke employment laws.

Hendrickson filed her lawsuit on July 14, 2026, claiming she faced discrimination based on race, color, national origin and age, along with retaliation, unequal pay and wrongful termination. She joined the bank in July 2005 and moved into management roles, becoming assistant branch manager at Sunny Isle in 2016 and later acting manager at Sunshine Mall.

In her complaint, Hendrickson said that between June 2024 and January 2025, workplace tensions involving another employee created a hostile environment for staff who did not speak Spanish. She alleged that the Human Resources Department ignored her concerns, weakened her authority as a manager and failed to stop insubordination. Hendrickson stated she was called to a meeting in February 2025 without warning and was let go after roughly 19 years with the company. She also said the bank interfered with her unemployment benefits.

Banco Popular has rejected her version of events, saying Hendrickson chose to resign on February 4, 2025.

In her case, Hendrickson is seeking compensatory damages, back pay, future wages, lost benefits, emotional distress damages, $250,000 in costs and interest. She filed a discrimination complaint with the Equal Employment Opportunity Commission in September 2025. The EEOC dismissed the charge and gave her the right to sue in April 2026.

Hendrickson fought the arbitration motion, contending that her 2005 employment contract should have been replaced when she was promoted to management and no longer held force. She also claimed Banco Popular acted improperly by filing its arbitration request multiple times.

Judge Henderson disagreed, finding the 2005 agreement still valid and binding. The judge noted that Hendrickson had signed the document and that it was designed to remain in effect unless ended through its own terms. He concluded that the arbitration clause covered the discrimination and employment claims in her lawsuit.

Banco Popular's initial arbitration motion, filed August 17, was rejected for not following court procedures. A second attempt on August 20 was denied without prejudice because the attached contract listed her name as Leslie Yarwood rather than Leslie Hendrickson. The bank resubmitted on September 11 with a statement from a human resources officer confirming she had used that earlier name.

Hendrickson also sought to strike the bank's motion and have the court enter default against Banco Popular. Judge Henderson denied both requests, saying the bank's earlier filings had only correctable flaws and that the renewed motion followed proper rules and showed no fraud or bad faith.

The federal case is now paused while arbitration moves forward. Both sides must file a status report with the court by April 1, 2027, and every six months after that while arbitration is pending.