Senate Bill S684

2023-2024 Legislative Session

Prohibits mandatory arbitration agreements in consumer and employment contracts; repealer

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-S684 (ACTIVE) - Details

See Assembly Version of this Bill:
A683
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Rpld & add §399-c, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2015-2016: A9956
2017-2018: S7924, A5240
2019-2020: S3208, A2301
2021-2022: S2752, A1189

2023-S684 (ACTIVE) - Summary

Prohibits mandatory arbitration agreements in consumer and employment contracts; repeals existing provisions prohibiting mandatory arbitration clauses in certain consumer contracts.

2023-S684 (ACTIVE) - Sponsor Memo

2023-S684 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    684
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 Introduced by Sens. COMRIE, SEPULVEDA -- read twice and ordered printed,
   and  when  printed  to  be  committed  to  the  Committee  on Consumer
   Protection
 
 AN ACT to amend the general business  law,  in  relation  to  prohibited
   mandatory  arbitration agreements; and to repeal section 399-c of such
   law relating to prohibiting mandatory arbitration clauses  in  certain
   consumer contracts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 399-c of the general business law is REPEALED and a
 new section 399-c is added to read as follows:
   § 399-C. PROHIBITED MANDATORY ARBITRATION AGREEMENTS.  1. DEFINITIONS.
 (A) THE TERM "CONSUMER DISPUTE" SHALL MEAN A DISPUTE BETWEEN AN INDIVID-
 UAL WHO SEEKS OR ACQUIRES REAL OR PERSONAL PROPERTY, SERVICES (INCLUDING
 SERVICES RELATING TO SECURITIES AND OTHER INVESTMENTS), MONEY, OR CREDIT
 FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES AND THE SELLER OR PROVIDER OF
 SUCH PROPERTY, SERVICES, MONEY OR CREDIT.
   (B) THE TERM "EMPLOYMENT DISPUTE" SHALL  MEAN  A  DISPUTE  BETWEEN  AN
 EMPLOYER  AND  EMPLOYEE  ARISING OUT OF THE RELATIONSHIP OF EMPLOYER AND
 EMPLOYEE AS DEFINED IN SECTION 3 OF THE FAIR LABOR STANDARDS ACT OF 1938
 (29 U.S.C. 203).
   (C) THE TERM "MANDATORY ARBITRATION AGREEMENT" SHALL MEAN  ANY  AGREE-
 MENT  TO  ARBITRATE A DISPUTE THAT HAD NOT YET ARISEN AT THE TIME OF THE
 MAKING OF THE AGREEMENT.
   2. PROHIBITED MANDATORY CONSUMER  AND  EMPLOYMENT  ARBITRATION  AGREE-
 MENTS.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, NO MANDATO-
 RY  ARBITRATION  AGREEMENT  SHALL BE VALID OR ENFORCEABLE IF IT REQUIRES
 ARBITRATION OF AN EMPLOYMENT DISPUTE OR CONSUMER DISPUTE.
   3.  PROHIBITION OF EFFECT OF CERTAIN MANDATORY ARBITRATION CLAUSES  OR
 AGREEMENTS.    MANDATORY  ARBITRATION  CLAUSES  OR  AGREEMENTS  COVERING
 CONSUMERS AND EMPLOYEE DISPUTES ARE CONTRARY TO THE  ESTABLISHED  PUBLIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00593-01-3
              

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