Honoraria & Expenses for Arbitrators
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Honoraria
FINRA will pay arbitrators honoraria in accordance with the Codes of Procedure. The following page answers the most commonly asked questions regarding honoraria.
Arbitrators are compensated at the rate of $300 per hearing session, with an additional $125 per day if acting as Chairperson at the hearings on the merits. For cases filed on or after April 19, 2021, Chairpersons will receive an additional $250 for each hearing day.
For cases filed or after April 19, 2021, Chairpersons will receive an additional $125 for each prehearing conference in which the Chairperson participates.
Frequently Asked Questions
Q. How does FINRA calculate hearing sessions to determine arbitrator honorarium and the forum fees assessed to the parties?
A. Pursuant to Rules 12100(n) and 13100(n) of the Codes of Arbitration Procedure, a “hearing session” is a meeting between the parties and arbitrators of four hours or less, including a hearing or a prehearing conference. FINRA calculates the number of hearing sessions per day based upon the total amount of time the parties and arbitrators meet.
For example, if the parties and arbitrators meet in the morning for two and one-half hours (2½), break for lunch for one hour (1) and return after lunch to meet for another one and one-half hours (1½), the parties will be assessed for one hearing session, and the arbitrators will be paid for one hearing session. FINRA does not calculate the one-hour lunch as part of the hearing session.
Although the parties and arbitrators met twice, once before and once after lunch, the total amount of time spent does not equal two hearing sessions pursuant to Rules 12100(n) and 13100(n).
Instead, the controlling factor in determining the number of hearing sessions is the total amount of time the parties and arbitrators met, which, in this example, equals one hearing session.
Q. Can two hearing sessions be held in a single day?
A. Yes, in many instances, evidentiary hearings are scheduled for four hours in the morning and four hours in the afternoon. When two, four-hour sessions are held in a single day, an arbitrator’s honorarium is $600, or $725 if the arbitrator is acting as Chairperson. For cases filed on or after April 19, 2021, Chairpersons will receive an additional $250 for each hearing day for a total of $850.
Q. Can I charge my hourly rate, as I do in the other forums?
A. No, the arbitrators’ honorarium is set at a fixed rate. Arbitrators should not ask the parties, or the FINRA staff member assigned to the case, to pay a higher rate.
Q. What is the arbitrator honorarium for deciding a case when no hearing is held?
A. Under FINRA’s simplified arbitration rules, arbitrators receive $350 for deciding a case based on the pleadings and other materials submitted by the parties, when no hearing is held.
Q. Who is responsible for collecting my fees from the parties?
A. Unlike other forums, Dispute Resolution pays the arbitrator honorarium for members of its roster from fees collected from the parties. Parties do not pay arbitrators directly. This is another important reason why arbitrators should not discuss any issue regarding their honorarium with the parties or their representatives.
Q. As an arbitrator, am I a FINRA employee?
A. No, arbitrators are independent contractors, not employees of FINRA. As such, arbitrators are not eligible to receive any unemployment benefits or any FINRA employee benefits.
Q. Are arbitrators compensated for the time spent studying materials?
A. No, the honorarium applies only to hearings and does not cover “study time.”
Q. Will I be compensated for handling any discovery motions?
A. Yes, FINRA provides arbitrators an honorarium of $200 to decide discovery-related motions on the papers. If more than one arbitrator considers a discovery-related motion, each arbitrator will receive $200. The panel will allocate the cost of the honorarium to the parties in the arbitration award.
Q. Will I be compensated for deciding a contested motion requesting that I issue a subpoena?
A. Yes, FINRA pays arbitrators an honorarium of $200 to decide without a hearing session a contested subpoena request or a contested order for production or appearance. This honorarium is not paid in simplified cases.
Q. What if a case settles before the hearing, after I’ve read all the materials in preparation? Am I entitled to compensation for the time I’ve already spent?
A. We place great value on the time contributed by arbitrators serving on the Dispute Resolution roster. However, arbitrators are not currently compensated for their preparation time, regardless of whether a case proceeds to hearing or is settled.
Q. If the parties request an explained decision pursuant to Rule 12904, will the arbitrators be compensated for drafting the explained decision?
A. Yes, the chairperson who is responsible for writing an explained decision will receive an additional honorarium of $400 pursuant to Rule 12904.
Q. What if a hearing is postponed? Are arbitrators compensated for the time they set aside for a hearing that is ultimately cancelled?
A. Yes, an arbitrator will receive $600 if a hearing is postponed, adjourned or cancelled within 10 days before a scheduled hearing session. This cancellation fee is effective for arbitration cases filed on or after July 6, 2015. For cases filed prior to July 6, 2015, an arbitrator will receive $100 if a hearing is postponed or cancelled within three business days before a scheduled hearing session. [Please note: If an arbitrator appears at a cancelled hearing because FINRA staff was unable to notify the arbitrator, the arbitrator will receive $50 for his/her trouble.] In addition, an arbitrator will receive $100 if a prehearing conference is cancelled within three business days of the scheduled date. This fee is effective for arbitration cases filed on or after October 29, 2018.
Q. The honorarium I’ve been receiving is less than $300 per hearing session. Why is that?
A. FINRA’s rules were revised in 2014 to increase the arbitrators’ honorarium to $300 per hearing session. If you are serving on a case that was filed prior to December 15, 2014, your honorarium will be at the lower rate that was in effect at the time the case was filed.
Q. Can I be reimbursed for expenses?
A. Arbitrators are reimbursed for reasonable local expenses. For further details, please refer to the Reimbursable Expenses section of this page.
Q. I participated in a hearing two weeks ago and have not received my honorarium check. Whom should I contact to inquire about the payment?
A. You can contact the case administrator who is managing the case. Your case administrator will be the main point of contact for these types of inquiries. Note, however, that FINRA will wait at least 30 days since the check was issued before issuing a new check. This allows time for reasonable delays before initiating stop payments and re-issuing checks.
Q. Will I be compensated for ruling on a non-contested motion?
A. No, arbitrators are generally not paid an honorarium in these circumstances.
Honoraria Tables
The tables below summarize the Codes of Procedure in chart form for easy reference.
Honoraria for Motions
The honoraria listed in this chart only applies to arbitrators ruling on the papers where no pre-hearing conference is held with the parties to address the motion. If a pre-hearing conference is held, each participating arbitrator will receive the appropriate honorarium for the pre-hearing conference, in accordance with the hearing session listed in the Honoraria for Hearings chart.
| Type of Motion* | If contested | If uncontested |
|---|---|---|
Motion for Subpoena(s)* | $200 per motion $250 max per arbitrator | No payment |
Motion for Order(s) for Production* | $200 per motion | No payment $200 per motion |
Motion for Order(s) to Appear* | No payment $200 per motion | No payment |
Motion for Confidentiality Order* | $200 | No payment |
Discovery Motions | $200 | $200 |
| Non-Discovery Motions for Full Panel (e.g., Motions to Amend, Dismiss, Strike)* | No payment as these are not covered in the Code | No payment as these are not covered in the Code |
*Please note there is no honoraria payable for agreed or stipulated motions.
Honoraria for Hearings, Cancellations and Other Decisions
Last updated April 19, 2021
| Event | Amount |
|---|---|
Hearing Session 0-4 hours with parties in pre-hearings or hearings | $300 For cases filed on or after 12/15/14 |
Additional Chairperson Payment For Each Day of Evidentiary Hearings | $250 $125 |
Additional Chairperson Payment For Pre-hearing Conferences | $125 For cases filed on or after 4/19/2021 |
Last-Minute Cancellation of Pre-hearing Conference | $100 For cases filed on or after 10/29/2018 (If cancellation is within 3 business days) |
Postponement of Evidentiary Hearings | No payment Unless it is a last-minute cancellation. Please see row above. |
Last-Minute Cancellation of Evidentiary Hearings | $600 $100 |
Arbitrator Travel to Postponed/Settled Hearing | $50 |
Explained Decision Must be joint request filed at least 20 days before the scheduled hearing | $400 Chairperson only |
Paper Case Decision Rules 12800/1380 (Simplified Cases) Rules 12801/13801 (Default Proceedings) Rule 13806 (Promissory Note Cases) | $350 For cases filed on or after 12/15/14 |
Stipulated Award Decision Fee Not provided for in the Code | $125 |
Reimbursable Expenses
FINRA will reimburse arbitrators for travel and expenses according to their expense category as determined by their proximity to the hearing location and FINRA’s need for traveling arbitrators in specific hearing locations. It may take up to six weeks to process expense reports from the date of complete submission.
Each arbitrator is assigned a primary location, which is generally the closest hearing location to their primary residence. If that location is within 75 miles, the arbitrator is entitled to mileage in accordance with IRS regulations and $30 a day for meals. In some instances, arbitrators live beyond 75 miles from their primary location or have been asked to travel to another hearing location at FINRA’s expense.
FINRA encourages arbitrators to use its corporate travel provider—ADTRAV—when making travel arrangements. Please wait until you have received confirmation of the hearing location before booking. Agents are on call 24/7 at (855) 764-2777.
Please see Reimbursable Expenses for ADTrav FAQ for answers to additional questions and FINRA’s Arbitrator Travel Policy for a full explanation of what expenses are eligible for reimbursement.
You may also refer to the following charts for quick reference.
- Category A – Arbitrators living/working within 75 miles of primary location
- Category B – Arbitrators living/working beyond 75 miles of primary location
- Category C – Arbitrators traveling to additional locations
- Category D – Arbitrators traveling to secondary location close to their primary location
Meals
| Category A | $30 per day |
|---|---|
| Category B | $125 per day ($185 per day for NY, SF & PR) |
| Category C | $125 per day ($185 per day for NY, SF & PR) |
| Category D | $30 per day |
| Requirements | Expense report + original/scanned receipts above $30 |
| Limitations | No alcohol, includes tax/tip |
Note: FINRA will reimburse arbitrators for meals up to $25 without a receipt or credit card statement. However, IRS guidance requires FINRA to report unsubstantiated meal reimbursements (i.e., those without a receipt or credit card statement) to the IRS as taxable income.
Air Travel
| Category A | Not reimbursable |
|---|---|
| Category B |
|
| Category C |
|
| Category D | Not reimbursable |
| Requirements |
|
| Limitations | Refundable tickets only |
Rail Travel
| Category A | Not reimbursable |
|---|---|
| Category B | Amtrak Northeast Regional or Acela Business Class |
| Category C | Amtrak Northeast Regional or Acela Business Class |
| Category D | Not reimbursable |
| Requirements |
|
| Limitations | No upgrades |
Taxi and Public Transportation
| Category A | Fare + 20% gratuity allowed |
|---|---|
| Category B | Fare + 20% gratuity allowed |
| Category C | Fare + 20% gratuity allowed |
| Category D | Fare + 20% gratuity allowed |
| Requirements | Expense report + original/scanned receipts |
Ride Sharing Services (e.g., Uber, Lyft)
| Category A | Fare + 20% gratuity if included in ride cost/added when credit card charged. |
|---|---|
| Category B | Fare + 20% gratuity if included in ride cost/added when credit card charged. |
| Category C | Fare + 20% gratuity if included in ride cost/added when credit card charged. |
| Category D | Fare + 20% gratuity if included in ride cost/added when credit card charged. |
| Requirements | Expense report + original/scanned receipts |
| Limitations | No luxury service |
Personal Automobile
| Category A | IRS Mileage Rate, Tolls, Parking |
|---|---|
| Category B | IRS Mileage Rate, Tolls and Parking up to cost of plane tickets or Amtrak ticket |
| Category C | IRS Mileage Rate, Tolls and Parking up to cost of plane tickets or Amtrak ticket. |
| Category D | IRS Mileage Rate, Tolls, Parking |
| Requirements | Expense report + original/scanned receipts |
Car Valet Gratuity
| Category A | $2/driver |
|---|---|
| Category B | $2/driver |
| Category C | $2/driver |
| Category D | $2/driver |
| Requirements | Expense report + original/scanned receipts |
Rental Cars
| Category A | If pre-approved, no optional collision damage waiver or refueling option. |
|---|---|
| Category B | If pre-approved, no optional collision damage waiver or refueling option. |
| Category C | If pre-approved, no optional collision damage waiver or refueling option. |
| Category D | If pre-approved, no optional collision damage waiver or refueling option. |
| Requirements | If pre-approved, expense report + original/scanned receipts |
| Limitations |
|
Lodging
| Category A | Not reimbursable |
|---|---|
| Category B |
|
| Category C |
|
| Category D | Not reimbursable |
| Requirements | Expense report + original/scanned receipts |
| Limitations |
|
Personal Travel Combined with FINRA Business
| Category A | Not reimbursable |
|---|---|
| Category B | Only expenses attributable to hearing |
| Category C | Only expenses attributable to hearing |
| Category D | Not reimbursable |
| Requirements | Expense report + original/scanned receipts |
Spouse and Guest Expenses
| Category A | Not reimbursable |
|---|---|
| Category B | Not reimbursable |
| Category C | Not reimbursable |
| Category D | Not reimbursable |
| Requirements | Not Applicable |
Tax Information
FINRA arbitrators are not employees of FINRA. As independent contractors, arbitrators will receive a 1099-MISC Form from FINRA if they earn $600 or more from providing arbitration services for FINRA during the previous year.
If you have questions about your FINRA issued 1099 Form, please contact FINRA's tax team by email or at (240) 386-5660. Otherwise contact the payer (or issuer) of the 1099 or the Internal Revenue Service.