Employment Discrimination Arbitrations
For many years, all claims that a registered representative had against a broker/dealer was subject to mandatory arbitration, by virtue of the representative’s association with the National Association of Securities Dealers, Inc.
However, on January 1, 1999, a change was made to the NASD Code of Arbitration Procedure, Rule 10201 (Required Submission), relating to the arbitration of employment discrimination claims. That provision is now FINRA Rule 13201:
A claim alleging employment discrimination, including sexual harassment, in violation of a statute, is not required to be arbitrated under the Code. Such a claim may be arbitrated only if the parties have agreed to arbitrate it, either before or after the dispute arose. If the parties agree to arbitrate such a claim, the claim will be administered under Rule 13802.
Therefore, brokers should carefully consider their options when filing a discrimination or sexual harassment claim, as the case may be more appropriate for a court proceeding, rather than an arbitration.
Copyright 2010. VGIS Communications LLC. All Rights Reserved. VGIS Communications, LLC – 41 Watchung Plaza, Suite 249, Montclair, New Jersey 07042 – 973-559-5566. Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial adviser before acting upon the information contained in this article. For additional information, contact Mark J. Astarita, Esq., a partner in the law firm of Beam & Astarita, LLC, who represents clients in a wide variety of finance related matters. Mr. Astarita can be contacted by email at firstname.lastname@example.org.
Visit Beam & Astarita, LLC