Employee Arbitration for the Securities Industry

Practice Areas Employment Cases Employee Arbitration for the Securities Industry

Zamansky LLC has built an impressive track record handling employment-related disputes on behalf of securities industry employees. Our securities arbitration attorneys represent clients who have been wrongfully terminated, are involved in compensation disputes or have had their Form U5 unfairly tarnished. These clients include registered representatives, analysts, brokers, hedge fund traders and trading assistants. We also have significant experience handling discrimination and sexual harassment claims. Our clients have included senior managing directors, as well as lower level securities industry employees.

A FINRA Attorney Can Handle Your Employment-Related Dispute

Most employment-related disputes between employees in the securities industry and their employers are decided by Financial Industry Regulatory Authority (FINRA) arbitration panels. The FINRA arbitration attorneys at Zamansky LLC have decades of experience handling all types of employment-related disputes, including wrongful termination, compensation disputes and Form U-5 cases.

The laws governing the employer and employee relationship are complex. It is imperative to have a knowledgeable legal representative who can explore all effective options for resolving your issues.

- Jacob H. Zamansky

Wrongful Termination

Brokerage firms, like any other employer, cannot terminate an employee for reasons that are prohibited by statute, public policy or an employment agreement. When a broker is terminated, brokerage firms are quick to assert that the employment relationship was “at will,” meaning the broker can be fired with or without cause at any time. Despite the lack of an employment agreement, most jurisdictions recognize that at-will employees have some statutory protections. The termination of an at-will broker may be found unlawful under certain circumstances, such as where the brokerage discriminates against a protected class, retaliates against the broker or acts in violation of public policy.

Wrongful termination claims can be difficult to establish and are dependent upon the specific state in which the broker is employed. Brokers who believe they may have a claim for wrongful termination should seek advice from an attorney skilled in representing securities industry employees.

Compensation Disputes

Professionals working in the securities industry often receive substantial yearly bonuses or incentive payments. If an employee is terminated or leaves before the time period when the compensation is paid, employers often refuse to pay the employee his/her bonus. Depending upon the particular circumstances surrounding the employment relationship and termination, the employee may be able to recover all or a portion of his or her bonus. FINRA arbitration panels typically decide these types of disputes and, in many cases, determine that employees are entitled to receive their bonus or incentive compensation.

Compensation disputes can also involve promissory notes or “up-front” forgivable loans. In order to recruit and retain a broker, brokerage firms may include a forgivable loan provision in an employment agreement. This provision provides the broker with an up-front loan that is forgiven over a period of time. If the broker leaves the firm or is terminated before the loan is forgiven, the broker is required to repay the outstanding balance on the loan. In the event the broker refuses to repay the loan, the brokerage firm may file a FINRA arbitration claim against the broker. In this event, a broker should promptly seek representation from an experienced FINRA attorney.

Form U-5 Cases

Form U-5 (Uniform Termination Notice for Securities Industry Registration) is a form that brokerage firms must file with the Financial Industry Regulatory Authority (FINRA) when a broker is terminated. The brokerage firm must report the reason for the termination and indicate whether the employee was fired, voluntarily left, or was permitted to resign.

When a broker has reason to believe that a firm has falsely reported the circumstances for his or her departure from the firm, the broker may be able to bring a FINRA arbitration action to expunge or alter the U-5 report. If you are a professional working in the securities industry, you should keep in mind that false or defamatory information reported on a U-5 form can ruin your career by damaging your reputation and seriously hindering your ability to find employment.

Contact a Lawyer at Zamansky LLC

The securities arbitration attorneys at Zamansky LLC understand that employment-related disputes must be resolved quickly and efficiently. If negative or defamatory information is falsely reported on a U-5 form, we work to promptly expunge or amend the information. If you are a victim of a compensation dispute or wrongful termination, our lawyers will develop an effective strategy to seek redress. Securities industry professionals dealing with all types of employment-related disputes should know that our firm is experienced, discreet and sensitive to their unique situations.

To learn more about how a securities arbitration or FINRA attorney at our firm can assist you with an employment-related dispute, contact our office today.