Dallas Employment Lawyer - Keith Clouse

Keith Clouse
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Arbitrating Employment Disputes Under FINRA Rules

A professional employed in the securities industry will likely need to resolve a dispute with an employer via arbitration (instead of litigation) pursuant to the rules governing that industry.

July 02, 2009


(press release: cdklawyers)

A professional employed in the securities industry will likely need to resolve a dispute with an employer via arbitration (instead of litigation) pursuant to the rules governing that industry. The United States securities industry is regulated by the Financial Industry Regulatory Authority (“FINRA”). FINRA was created in July 2007 through the consolidation of the National Association of Securities Dealers and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange.   

FINRA maintains extensive rules regulating the industry.  In addition, FINRA dictates how employment-related issues arising within the industry should be resolved; FINRA utilizes mandatory arbitration for most employment-related disputes.  Often these disputes involve wrongful termination, unpaid bonuses or commissions, breaches of non-competition and/or non-solicitation agreements, and trade secret violations.  Given the current economic climate, these disputes may increase as employers seek to avoid paying large bonuses and as employees leave companies in larger numbers.

FINRA also offers parties an alternative to arbitration: mediation. Mediation is a voluntary process by which a FINRA mediator assists the parties in reaching a settlement prior to arbitration.  If no settlement is reached, the parties proceed to arbitration. 

Although an individual may arbitrate a claim pursuant to FINRA rules without representation, many individuals prefer to be represented by counsel.  If you would like to speak to an employment law attorney about a dispute with a securities industry employer, please contact the employment lawyers at Clouse Dunn Khoshbin LLP at info@cdklawyers.com