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S07799 Summary:

BILL NOS07799
 
SAME ASSAME AS A07898
 
SPONSORCOMRIE
 
COSPNSR
 
MLTSPNSR
 
Amd §7515, CPLR
 
Requires specific notice of mandatory arbitration clauses in employment contracts.
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S07799 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7799
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                       May 9, 2025
                                       ___________
 
        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee 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

        S. 7799                             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.
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