Relates to mandatory arbitration clauses in employment contracts

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          7898

                               2025-2026 Regular Sessions

                                  I N  A S S E M B L Y

                                     April 11, 2025
                                       ___________

        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Judiciary

        AN  ACT  to amend the civil practice law and rules, in relation to arbi-
          tration clauses in employment contracts

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section  1.  Paragraph  4  of  subdivision  (a) and subdivision (b) of
     2  section 7515 of the civil practice law and rules, as added by section  1
     3  of subpart B of part KK of chapter 57 of the laws of 2018, is amended to
     4  read as follows:
     5    4.  The  term  "arbitration"  shall  mean the use of a decision making
     6  forum conducted by an arbitrator or  panel  of  arbitrators  within  the
     7  meaning  and  subject to the provisions of THIS article [seventy-five of
     8  the civil practice law and rules].
     9    (b) (i) Prohibition. Except where inconsistent with  federal  law,  no
    10  written  contract,  entered  into on or after the effective date of this
    11  section shall contain a prohibited clause as defined in paragraph two of
    12  subdivision (a) of this section.
    13    (ii) Exceptions. Nothing contained in this section shall be  construed
    14  to  impair  or  prohibit an employer from incorporating a non-prohibited
    15  clause or other mandatory arbitration provision  within  such  contract,
    16  that the parties agree upon; PROVIDED, HOWEVER, THAT IN THE EVENT THAT A
    17  PARTY  IS REQUIRED TO SIGN A CONTRACT FOR EMPLOYMENT CONTAINING A MANDA-
    18  TORY ARBITRATION CLAUSE THE REPRESENTATIVE SHALL DISCLOSE THE  MANDATORY
    19  ARBITRATION  CLAUSE TO THE PARTY AND CLEARLY EXPLAIN, IN PLAIN LANGUAGE,
    20  WHAT AN ARBITRATION CLAUSE IS. IF THE PARTY IS AGREEING TO A CONTRACT BY
    21  ANY FORM OF CONTACT THAT IS NOT PERSONAL, INCLUDING BUT NOT LIMITED  TO,
    22  ELECTRONICALLY,  USING  THE  INTERNET OR THROUGH THE MAIL, SUCH CONTRACT
    23  SHALL HAVE, AT THE END OF SUCH CONTRACT, INFORMATION INFORMING THE PARTY
    24  THAT THEY ARE SIGNING A MANDATORY ARBITRATION  CLAUSE  AND  AN  INTERNET

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11422-01-5
        A. 7898                             2

     1  LINK  TO  A  VALID  AND PLAIN WRITTEN EXPLANATION OF WHAT AN ARBITRATION
     2  CLAUSE IS.
     3    (iii)  Mandatory arbitration clause null and void. Except where incon-
     4  sistent with federal law, the provisions of such  prohibited  clause  as
     5  defined  in  paragraph  two  of subdivision (a) of this section shall be
     6  null and void. The inclusion of such clause in a written contract  shall
     7  not  serve  to  impair the enforceability of any other provision of such
     8  contract.
     9    § 2. This act shall take effect immediately.