Employment Disputes in the Securities Industry

Navigating employment disputes in the securities industry can be a complex and high-stakes process, given the strict regulatory environment and the significant financial implications. The unfortunate reality is that if you make one wrong move it can mean the end of your career. At Malecki Law, our securities employment attorneys are here to help protect your professional rights and ensure you receive fair treatment in your workplace. We’ve successfully helped countless securities industry professionals and look forward to seeing how we can help you.

Employment disputes in the securities industry can arise from a variety of issues, including:

• Wrongful Termination: Allegations of unfair dismissal based on false accusations, retaliation, or discrimination.
• Discrimination and Harassment: Claims based on race, gender, age, or other protected characteristics.
• Compensation Disputes: Issues over unpaid bonuses, withheld commissions, or improper deductions.
• Form U5 Language: Disputes regarding the accuracy of termination language on a broker’s Form U5, which can significantly impact future employment opportunities.
• Promissory Notes and Forgivable Loans: Disagreements over repayment obligations tied to employment agreements.
• Whistleblower Retaliation: Repercussions faced by employees who report wrongdoing within their firm.

Key parties in an employment dispute typically include:

• Employees: Registered representatives, brokers, advisors, or analysts who believe they have been wronged.
• Employers: Brokerage firms, registered investment advisors (RIAs), or other financial services firms.
• Regulatory Bodies: Agencies like FINRA, the SEC or state regulators may be involved if disputes relate to regulatory violations or compliance issues.
• Legal Representatives: Attorneys specializing in securities employment law play a critical role in resolving these disputes effectively.

Employment disputes in the securities industry are often resolved through:

1. Internal Processes: Many firms have internal procedures for addressing grievances, such as HR investigations or mediation.
2. Arbitration: FINRA arbitration is a common method for resolving disputes in the securities industry. Employees may be required to arbitrate claims based on their employment agreements.
3. Litigation: In some cases, disputes are escalated to court, particularly when significant financial losses or regulatory issues are involved.
4. Regulatory Complaints: Employees can file complaints with FINRA, the SEC, or state regulators if they believe their rights under securities laws have been violated.

Each method has its own advantages and challenges, making it essential to have experienced legal counsel to guide you through the process.

In a perfect world, employers would always be honest, be upfront, and would follow state and federal employment laws. However, anyone who has spent much time in the industry knows that’s not always the case. If you believe you are being targeted or set up at your workplace, it is crucial to act quickly and strategically:

1. Document Everything: Keep detailed records of incidents, communications, and actions that raise concerns. Emails, meeting notes, and other documentation can serve as evidence.
2. Consult an Attorney: Seek immediate legal advice from a securities employment lawyer to understand your rights and options.
3. Avoid Retaliatory Behavior: Maintain professionalism and avoid any actions that could be misconstrued by your employer.
4. File a Complaint if Necessary: If your firm’s internal processes fail to address the issue, your attorney can help you escalate the matter to the appropriate regulatory body or arbitration forum.

Malecki Law has a proven track record of successfully representing securities professionals in all types of employment disputes. Whether you are facing wrongful termination, retaliation, or other workplace issues, our attorneys are dedicated to protecting your rights and achieving the best possible outcome. Contact Malecki Law at (212) 943-1233 for a consultation and take the first step toward resolving your employment dispute with confidence. We are immediately available to discuss your case.