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Assembly Bill A7898

2025-2026 Legislative Session

Relates to mandatory arbitration clauses in employment contracts

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Current Bill Status - In Senate Committee Judiciary Committee

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2025-A7898 (ACTIVE) - Details

See Senate Version of this Bill:
S7799
Current Committee:
Senate Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd §7515, CPLR

2025-A7898 (ACTIVE) - Summary

Requires specific notice of mandatory arbitration clauses in employment contracts.

2025-A7898 (ACTIVE) - Bill Text download pdf 

                             
                     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:

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

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