Cowen Broker’s Bias Claims Must Be Arbitrated Despite N.Y. Ban

Agreements signed by a Cowen & Co. broker-dealer in the firm’s investment banking division obligate him to arbitrate claims that he experienced discrimination and retaliation related to becoming a new parent, the Southern District of New York ruled.

The court is the latest to find New York’s 2018 ban on mandatory arbitration of sexual harassment claims—later extended to cover all job bias claims—is preempted by the Federal Arbitration Act. It cited U.S. Supreme Court precedent that all state laws that prohibit the arbitration of specific types of claims are “displaced” by the FAA.

“NY CPLR §7515 is a paradigmatic example ...