Involuntary termination is difficult in any industry, but it has especially harsh implications for financial professionals. After terminating a financial planner, advisor, or dealer, their firm files a Form U5 explaining the termination with FINRA. If the form contains defamatory content, this permanent record can mark the end of the professional’s career.
However, with the help of an expert FINRA attorney, it is possible to appeal these records and have them expunged, allowing you to move forward in your financial career. The securities attorneys at Landsman Saldinger Carroll have decades of experience dealing with wrongful termination cases and other litigation in the finance and securities industry.
This guide will help you understand what constitutes wrongful termination, what to do if you suspect it, and how to protect your career and reputation.
What Constitutes Wrongful Termination?
Employees in the finance industry may be subject to termination due to downsizing, poor performance, or other legitimate reasons. United States labor laws give room to employers in how they handle this task. Wrongful termination litigation comes into play when an employee suspects they have been terminated for an illegal reason.
Discrimination
Wrongful termination based on discrimination happens when an employee loses their job due to being part of a protected class such as race, gender, religion, or sexual orientation.
Retaliation
If an employee is fired in retaliation for protected actions such as filing a harassment claim or whistleblowing, it constitutes wrongful termination.
Employment Contract Violations
If an individual is employed under a contract, breaching the terms of that contract may qualify as wrongful termination.
Constructive Dismissals
Although the employee has not been fired directly, creating a hostile work environment that forces the individual to resign is considered grounds for wrongful termination litigation.
What to Do if You Suspect Wrongful Termination
If you believe you have been wrongfully terminated, it’s critical to recognize your legal rights. US employment laws give you the option to file a suit to resolve the issue. For financial professionals, the long-term consequences of a negative U5 form make it all the more important to seek a legal solution. As you work through this process, there are some steps you should take.
Document Evidence and Incidents
Make a record of any incidents that may point toward wrongful termination. Compelling evidence might include emails, memos, and other documents that indicate suspicious timing or motives. Compiling a list of colleagues and clients who can attest to your performance is another valuable resource.
Seek Legal Counsel
As a financial professional, you will want to work with legal representatives who are familiar with financial law as well as wrongful termination cases. Experienced securities and financial fraud attorneys understand the process of seeking compensation and protecting your reputation.
A Wrongful Termination Checklist
Termination is an emotional shock, and it can be difficult to decide how to move forward. However, taking a rational approach when you suspect wrongful termination will improve the process.
1. Assess Your Employment Situation
First, you must determine if you are an at-will employee or if you have a contract with your firm. While at-will employees cannot be fired for illegal reasons, they can typically be terminated without cause. If you have a contract, review your terms of employment to determine if there was a breach. You should also consider the events leading up to the termination such as performance reviews, warnings, or other indicators.
2. Review Relevant Documents and Contracts
While an employment contract is a powerful resource for wrongful termination cases, other documents may also provide important information about your situation. Such resources include employee handbooks, policy documents, and any correspondence regarding your termination. Pay special attention to any information related to disciplinary procedures, dispute resolution, or termination.
3. Identify Potential Violations
Once you have reviewed your contract and your firm’s policies, you can look for any signs of potential employment law violations such as discrimination, retaliation, or contract breaches. While you may have suspicions, a legal professional experienced in finding wrongful termination violations will be an important resource at this stage.
4. Document Events and Communications
A record of the events leading to your termination will be invaluable as you prepare your case. As much as possible, record the dates, times, and the names of individuals involved in relevant interactions. Create a file containing meeting notes, performance reviews, and other documentation that will strengthen your case.
5. Consider Your Options for Resolution
Before pursuing legal action, you may want to work with the internal dispute resolution processes at your firm such as filing a complaint with the human resources department. If these resources are ineffective or unavailable, it may be time to consider a more formal legal solution.
Tips for Handling Wrongful Termination
It is natural to want to defend yourself when you feel wronged. However, your behavior as you pursue an appropriate resolution can affect the standing of your case.
Remain Calm
Keeping a level head can be difficult when you suspect you have been treated unfairly. It may seem like you are justified in lashing out at your former employer. Yet, you may feel differently when your angry emails and text messages show up in legal proceedings. Maintaining a professional demeanor will be to your benefit throughout the process.
Communicate Effectively
Provide clear communication as you go through the wrongful termination process. Organize your documents so you can find them quickly and present them when asked. While it is appropriate to consult your legal counsel before taking action, you do not want to be seen as intentionally slowing down or disrupting the proceedings.
The Importance of Timeliness
Your timetable matters if you suspect wrongful termination. Resolving the issue becomes more difficult the further you are in time from the dismissal. Records can be lost and conversations forgotten. Additionally, incorrect or unwarranted negative information on a financial advisor’s FINRA records could make it more difficult to continue your career if it is not removed quickly.
Take Care of Your Well-Being
Dealing with wrongful termination is stressful. You will put a great deal of energy into arriving at a fair resolution. However, you should make time to take care of yourself: pursuing outside interests, exercising, and enjoying family and friends. These intentional breaks will put you in a better mental space to deal with the stress.
Know When to Seek Legal Assistance
If your employer refuses to acknowledge its mistake, seeking legal counsel is the appropriate next step. Experienced employment lawyers understand the hallmarks of wrongful termination and are well-equipped to help you through the process.
Choosing the Wrongful Termination Experts at Landsman Saldinger Carroll
You should not have to end your career as a financial professional because of a lost job. If you believe you have been illegally dismissed, the employment law litigation specialists at Landsman Saldinger Caroll can provide the representation and guidance you need to preserve your reputation and keep your career in the financial industry moving forward. Contact us today at 312-219-4650.
