In a closely watched case, the United States Court of Appeals for the First Circuit found that federal law does not prohibit an individual from agreeing in writing to arbitrate employment disputes that arise later. In Rosenberg v. Merrill Lynch, Pierce, Fenner & Smith, Inc. et al., the Court upheld the alternate dispute resolution (ADR) provisions Ms. Rosenberg had agreed to when she executed the Uniform Application for Security Industry Registration or Transfer. The "U-4," as it is referred to in the securities industry, provided for arbitration rather than litigation of certain claims.
When Ms. Rosenberg sued for sexual harassment, gender and age discrimination, Merrill Lynch sought to compel arbitration under the U-4. The District Court denied the company's motion and stated that the Civil Rights Act of 1991 clearly indicated Congress' view that mandatory arbitration agreements had no place under Title VII, the statute that authorizes sexual harassment and gender
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