Agreement compelling Arbitration of Title VII Claims held Unenforceable

The United States District Court for the District of Massachusetts recently held that an agreement compelling the arbitration of Title VII claims was unenforceable. In Rosenberg v. Merrill Lynch, Pierce, Fenner & Smith Inc., Susan Rosenberg, a financial consultant, was terminated from her position at Merrill Lynch for poor performance. Rosenberg filed suit, claiming that her discharge was the result of age and gender discrimination. Merrill Lynch moved to compel arbitration of the claims, because Rosenberg had signed a standard U-4 form in which she agreed to arbitrate any future dispute with her employer under the arbitration rules of various securities industries organizations, including the New York Stock Exchange ("NYSE").