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ARTICLE · 24 MARCH 1999

Continuing Uncertainty in Pre-dispute Arbitration Agreement

United StatesEmployment and HR

In three recently decided cases, United States courts continue to scrutinize the use of pre-dispute arbitration agreements. These agreements, which are referred to in the securities industry as the "Form U-4," generally require employees to pursue any employment-related claims they may have in the future, such as discrimination claims, through the more informal procedure of arbitration, rather than filing a lawsuit in a state or federal court. The U.S. Court of Appeals for the District of Columbia Circuit recently found that a securities saleswoman who registered with the National Association of Securities Dealers ("NASD") did not have to arbitrate her sex discrimination and retaliation claims against her employer. In Gardner v. Benefits Communications Corp., No. 98-7054, 1999 WL 83942 (D.C. Cir. Feb. 23, 1999), the Court of Appeals held that the NASD arbitration rules did not cover Sandra Gardner's dispute with her employer because her employer was not an NASD member and was

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