Hotvet v. First Wilshire Securities Management, In
Jill Brightwell Hotvet sued her former employer First Wilshire Securities Management, Inc. (Management) for wrongful termination in violation of public policy, breach of contract and violation of multiple Labor Code provisions intended to protect employees from wage theft and retaliation. Management petitioned to compel arbitration of Hotvet’s complaint in accordance with rules requiring members and associated persons of the Financial Industry Regulatory Authority (FINRA) to arbitrate their disputes arising out of the business activities of a FINRA member or associated person of a FINRA member. The superior court denied the petition, ruling there was no agreement to arbitrate and, in any event, Management had not carried its burden to demonstrate it was a FINRA member or that the dispute fell within the scope of the arbitration agreement. The court’s ruling is only partially correct.
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