The current status of securities industry employment arbitration claims

Abstract

The present system requiring securities industry employees to prospectively waive their right to a judicial forum in favor of arbitration of their employment disputes in the forum specified by their employers is being called into question by courts, legislators and agencies, as well as by the employees. This article explores the alternative dispute resolution mechanism of binding arbitration as it is used in securities industry employment disputes. While arbitration is not inherently inferior to litigation, it is incumbent for the securities industry to ensure that the system is fair and accessible to employees.