Fair Labor Standards Act Claims Arbitrable Before FINRA, 2nd Cir. Affirms

NEW YORK — Wage-and-hour claims brought under the Fair Labor Standards Act are arbitrable before the Financial Industry Regulatory Authority because FINRA members are not barred from enforcing pre-dispute waivers of class and collective action procedures, a federal appeals court has affirmed.

In a June 30 ruling, the 2nd Circuit U.S. Court of Appeals found that Rule 13204 of the FINRA Code of Arbitration Procedure for Industry Disputes is not contrary to the contractual waiver.

Eliot Cohen, a financial advisor employed by UBS Financial Services Inc., entered into a Compensation Plan in which he contractually agreed to arbitrate "claims concerning …