S T A T E O F N E W Y O R K
________________________________________________________________________
6907--A
2025-2026 Regular Sessions
I N A S S E M B L Y
March 18, 2025
___________
Introduced by M. of A. DINOWITZ, SEAWRIGHT, STIRPE -- read once and
referred to the Committee on Judiciary -- recommitted to the Committee
on Judiciary in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the civil practice law and rules, in relation to arbi-
tration agreements
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Article 75 of the civil practice law and rules is amended
by adding a new section 7500 to read as follows:
§ 7500. DEFINITIONS. AS USED IN THIS ARTICLE:
(A) "ARBITRATION" MEANS 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.
(B) "NEUTRAL THIRD-PARTY ARBITRATOR" MEANS AN ARBITRATOR WHO DOES NOT
HAVE AN UNDISCLOSED KNOWN, DIRECT OR MATERIAL INTEREST, INCLUDING A
FINANCIAL OR PERSONAL INTEREST IN THE OUTCOME OF THE ARBITRATION
PROCEEDING, OR A KNOWN, EXISTING OR PAST RELATIONSHIP WITH ANY OF THE
PARTIES TO THE AGREEMENT TO ARBITRATE OR THE ARBITRATION PROCEEDING,
THEIR COUNSEL OR REPRESENTATIVES, A WITNESS, OR ANOTHER ARBITRATOR.
(C) "EMPLOYMENT" MEANS A RELATIONSHIP BETWEEN AN EMPLOYER AND AN
EMPLOYEE AS DEFINED IN SECTION THREE OF THE FAIR LABOR STANDARDS ACT OF
1938 (29 U.S.C. § 203) BUT WHO IS NEITHER AN OFFICER NOR EMPLOYED PURSU-
ANT TO AN INDIVIDUALIZED, MUTUALLY-NEGOTIATED EMPLOYMENT CONTRACT.
(D) "CONSUMER" MEANS A NATURAL PERSON RESIDING IN THIS STATE WHO IS
INVOLVED IN A CONSUMER DISPUTE.
(E) "CONSUMER DISPUTE" MEANS A DISPUTE BETWEEN AN INDIVIDUAL 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07891-04-6
A. 6907--A 2
SUCH PROPERTY, SERVICES, MONEY OR CREDIT, BUT SHALL NOT INCLUDE ANY SUCH
PROPERTY OR SERVICE, INCLUDING FINANCIAL PRODUCTS AND SERVICES WHERE THE
TERMS OF ACQUISITION OF SUCH PRODUCT OR SERVICE ARE MUTUALLY NEGOTIATED
BETWEEN THE SELLER AND THE PURCHASER OF SUCH PROPERTY OR SERVICE.
§ 2. Section 7501 of the civil practice law and rules, as amended by
chapter 532 of the laws of 1963, is amended to read as follows:
§ 7501. Effect of arbitration agreement. A written agreement to
submit any [controversy] EMPLOYMENT DISPUTE OR CONSUMER DISPUTE there-
after arising or [any] THEN existing [controversy] to arbitration is
enforceable without regard to the justiciable character of the [contro-
versy] DISPUTE and confers jurisdiction on the courts of the state to
enforce it and to enter judgment on an award; PROVIDED, HOWEVER, AND
EXCEPT WHERE INCONSISTENT WITH FEDERAL LAW, THAT LANGUAGE REQUIRING SUCH
EMPLOYMENT OR CONSUMER DISPUTE BE SUBMITTED TO AN ARBITRATOR OR ARBI-
TRATION ORGANIZATION THAT IS NOT A NEUTRAL THIRD-PARTY ARBITRATOR, SHALL
BE DEEMED VOID. THE REQUIREMENT THAT SUCH EMPLOYMENT OR CONSUMER
DISPUTE BE HEARD BY A NEUTRAL THIRD-PARTY ARBITRATOR MAY NOT BE WAIVED
BY A PARTY PRIOR TO THE SERVICE ON SUCH PARTY OF A DEMAND FOR ARBI-
TRATION. UPON DISCLOSURE PURSUANT TO SECTION SEVENTY-FIVE HUNDRED FIVE-A
OF THIS ARTICLE, A PARTY SHALL BE DEEMED TO HAVE WAIVED ANY OBJECTION TO
THE ARBITRATOR BY FAILING TO RAISE SAME WITHIN THIRTY CALENDAR DAYS OF
RECEIVING THE DISCLOSURE. In determining any matter arising under this
article, the court shall not consider whether the claim with respect to
which arbitration is sought is tenable, or otherwise pass upon the
merits of the dispute.
ARBITRATION OF ANY EMPLOYMENT OR CONSUMER DISPUTE SHALL BE CONDUCTED
BY A NEUTRAL THIRD-PARTY ARBITRATOR. APPOINTMENT OF ANY ARBITRATOR
SHALL REASONABLY ENSURE THE PERSONAL OBJECTIVITY OF THE ARBITRATOR AND
THE RIGHT OF EACH PARTY TO PRESENT ITS CASE, TO BE IN ATTENDANCE DURING
ANY PRESENTATION MADE BY THE OTHER PARTY AND TO REBUT OR REFUTE SUCH
PRESENTATION.
§ 3. The civil practice law and rules is amended by adding a new
section 7505-a to read as follows:
§ 7505-A. DISCLOSURE BY ARBITRATOR IN EMPLOYER AND CONSUMER DISPUTES.
(A) BEFORE ACCEPTING APPOINTMENT TO ANY EMPLOYMENT OR CONSUMER DISPUTE,
AN INDIVIDUAL WHO IS REQUESTED TO SERVE AS AN ARBITRATOR, AFTER MAKING A
REASONABLE INQUIRY, SHALL DISCLOSE TO ALL PARTIES TO THE AGREEMENT TO
ARBITRATE AND THE ARBITRATION PROCEEDING, AND TO ANY OTHER ARBITRATORS
ANY KNOWN FACTS THAT A REASONABLE PERSON WOULD CONSIDER LIKELY TO AFFECT
THE IMPARTIALITY OF THE ARBITRATOR IN THE ARBITRATION PROCEEDING,
INCLUDING:
(1) A FINANCIAL OR PERSONAL INTEREST IN THE OUTCOME OF THE ARBITRATION
PROCEEDING; AND
(2) AN EXISTING OR PAST RELATIONSHIP WITH ANY OF THE PARTIES TO THE
AGREEMENT TO ARBITRATE OR THE ARBITRATION PROCEEDING, THEIR COUNSEL OR
REPRESENTATIVES, A WITNESS, OR ANOTHER ARBITRATOR.
(B) AN ARBITRATOR HAS A CONTINUING OBLIGATION TO DISCLOSE TO ALL
PARTIES TO THE AGREEMENT TO ARBITRATE AND THE ARBITRATION PROCEEDING,
AND TO ANY OTHER ARBITRATORS ANY FACTS THAT THE ARBITRATOR LEARNS AFTER
ACCEPTING APPOINTMENT WHICH A REASONABLE PERSON WOULD CONSIDER LIKELY TO
AFFECT THE IMPARTIALITY OF THE ARBITRATOR.
(C) IF AN ARBITRATOR DISCLOSES A FACT REQUIRED BY SUBDIVISION (A) OR
(B) OF THIS SECTION AND A PARTY TIMELY OBJECTS TO THE APPOINTMENT OR
CONTINUED SERVICE OF THE ARBITRATOR BASED UPON THE FACT DISCLOSED, THE
OBJECTION MAY BE A GROUND FOR VACATING AN AWARD MADE BY THE ARBITRATOR
A. 6907--A 3
IF THE COURT HOLDS THAT THE ARBITRATOR WAS PARTIAL AS PROVIDED FOR IN
SECTION SEVENTY-FIVE HUNDRED ELEVEN OF THIS ARTICLE.
(D) IF THE ARBITRATOR DID NOT DISCLOSE A FACT AS REQUIRED BY SUBDIVI-
SION (A) OR (B) OF THIS SECTION, UPON TIMELY OBJECTION BY A PARTY AFTER
DISCOVERY OF SUCH NON-DISCLOSURE, THE COURT MAY VACATE AN AWARD BASED ON
SUCH NON-DISCLOSURE IF THE COURT HOLDS THAT THE ARBITRATOR WAS PARTIAL
AS PROVIDED FOR IN SECTION SEVENTY-FIVE HUNDRED ELEVEN OF THIS ARTICLE.
§ 4. Section 7506 of the civil practice law and rules is amended to
read as follows:
§ 7506. Hearing. (a) Oath of arbitrator. Before hearing any testimony,
an arbitrator shall be sworn to hear and decide the controversy faith-
fully and fairly by an officer authorized to administer an oath.
(b) Time and place. The arbitrator shall appoint a time and place for
the hearing and notify the parties in writing personally or by regis-
tered or certified mail not less than eight days before the hearing. The
arbitrator may adjourn or postpone the hearing. The court, upon applica-
tion of any party, may direct the arbitrator to proceed promptly with
the hearing and determination of the controversy.
(c) Evidence. The parties are entitled to be heard, to present
evidence and to cross-examine witnesses. Notwithstanding the failure of
a party duly notified to appear, the arbitrator may hear and determine
the controversy upon the evidence produced.
(d) POSTPONEMENTS AND ADJOURNMENTS. THE ARBITRATOR MAY FOR GOOD CAUSE
POSTPONE OR ADJOURN THE HEARING UPON REQUEST OF A PARTY OR UPON THE
ARBITRATOR'S OWN INITIATIVE. IF A PARTY TO AN ARBITRATION INTENDS TO
PRESENT TESTIMONY FROM A WITNESS AT THE HEARING, ABSENT GOOD CAUSE
SHOWN, THE IDENTITY OF THE WITNESS MUST BE GIVEN TO ALL PARTIES AT LEAST
SEVEN CALENDAR DAYS PRIOR TO THE HEARING.
(E) Representation by attorney. A party has the right to be repres-
ented by an attorney and may claim such right at any time as to any part
of the arbitration or hearings which have not taken place. This right
may not be waived. If a party is represented by an attorney, papers to
be served on the party shall be served upon [his] THE PARTY'S attorney.
IT SHALL BE DISCRETIONARY WITH THE ARBITRATOR TO PERMIT THE ATTENDANCE
OF ANY OTHER PERSONS.
[(e)] (F) Determination by majority. The hearing shall be conducted by
all the arbitrators, but a majority may determine any question and
render an award.
[(f)] (G) Waiver. Except as provided in subdivision [(d)] (E) OF THIS
SECTION, a requirement of this section may be waived by written consent
of the parties and it is waived if the parties continue with the arbi-
tration without objection.
§ 5. Section 7507 of the civil practice law and rules, as amended by
chapter 952 of the laws of 1981, is amended to read as follows:
§ 7507. Award; form; time; delivery. (A) Except as provided in
section 7508, the award shall be in writing, signed and affirmed by the
arbitrator making it within the time fixed by the agreement, or, if the
time is not fixed, within such time as the court orders.
(B) IN AN ARBITRATION INVOLVING A CONSUMER DISPUTE OR AN EMPLOYMENT
DISPUTE WHERE ARBITRATION WAS HELD PURSUANT TO A CONTRACT, AND EXCEPT
WHERE INCONSISTENT WITH FEDERAL LAW, THE AWARD SHALL STATE THE ISSUES IN
DISPUTE AND SHALL SET FORTH AN EXPLANATION OF THE REASONS FOR THE AWARD.
THE AWARD SHALL CONTAIN A DECISION ON ALL ISSUES SUBMITTED TO THE ARBI-
TRATOR.
(C) The parties may in writing extend the time either before or after
its expiration. A party waives the objection that an award was not made
A. 6907--A 4
within the time required unless [he] THE PARTY notifies the arbitrator
in writing of [his] THE PARTY'S objection prior to the delivery of the
award [to him].
(D) The arbitrator shall deliver a copy of the award to each party in
the manner provided in the agreement, or, if no provision is so made,
personally or by registered or certified mail, return receipt requested.
§ 6. The civil practice law and rules is amended by adding two new
sections 7517 and 7518 to read as follows:
§ 7517. PROHIBITED PREDISPUTE ARBITRATION AGREEMENTS. (A) DEFI-
NITIONS. (I) THE TERM "CONSUMER DISPUTE" MEANS A DISPUTE BETWEEN AN
INDIVIDUAL 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.
(II) THE TERM "EMPLOYMENT DISPUTE" MEANS A DISPUTE BETWEEN AN EMPLOYER
AND EMPLOYEE ARISING OUT OF THE RELATIONSHIP OF EMPLOYER AND EMPLOYEE AS
DEFINED IN SECTION THREE OF THE FAIR LABOR STANDARDS ACT OF 1938 (29
U.S.C. § 203) BUT WHO IS NEITHER AN OFFICER NOR EMPLOYED PURSUANT TO AN
INDIVIDUALIZED, MUTUALLY-NEGOTIATED EMPLOYMENT CONTRACT.
(III) THE TERM "PREDISPUTE ARBITRATION AGREEMENT" MEANS ANY AGREEMENT
TO ARBITRATE A DISPUTE THAT HAD NOT YET ARISEN AT THE TIME OF THE MAKING
OF THE AGREEMENT.
(B) PROHIBITION. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE,
AND EXCEPT WHERE INCONSISTENT WITH FEDERAL LAW NO PREDISPUTE ARBITRATION
AGREEMENT SHALL BE VALID OR ENFORCEABLE IF IT REQUIRES ARBITRATION OF AN
EMPLOYMENT DISPUTE OR CONSUMER DISPUTE.
§ 7518. PROHIBITED PROVISIONS. (A) PROHIBITION OF EFFECT OF CERTAIN
ARBITRATION CLAUSES OR AGREEMENTS. MANDATORY ARBITRATION CLAUSES OR
AGREEMENTS COVERING CONSUMERS AND EMPLOYEES ARE CONTRARY TO THE ESTAB-
LISHED PUBLIC POLICY OF THIS STATE. BECAUSE EMPLOYEES AND CONSUMERS ARE
FORCED TO ASSENT TO THESE AGREEMENTS AS A CONDITION OF BEING AN EMPLOYEE
OR CONSUMER BEFORE ANY DISPUTE HAS ARISEN WITH THE EMPLOYER OR MERCHANT,
THESE AGREEMENTS DO NOT OFFER EMPLOYEES AND CONSUMERS A MEANINGFUL
CHOICE ABOUT HOW TO RESOLVE THEIR DISPUTES WITH THE EMPLOYER OR
MERCHANT. IN ADDITION, MANDATORY ARBITRATION AGREEMENTS PREVENT EMPLOY-
EES AND CONSUMERS FROM EFFECTIVELY VINDICATING THEIR RIGHTS UNDER STATE
LAW. FOR THESE REASONS, EXCEPT WHEN INCONSISTENT WITH FEDERAL LAW, THE
STATE PROHIBITS THE FORMATION AND ENFORCEMENT OF MANDATORY ARBITRATION
AGREEMENTS IN EMPLOYMENT AND CONSUMER CONTRACTS.
(B) PROHIBITION OF ARBITRATION CLAUSES IN EMPLOYMENT CONTRACTS FOR
WORKERS EXEMPTED FROM THE FEDERAL ARBITRATION ACT. A MANDATORY ARBI-
TRATION AGREEMENT WITHIN OR PART OF ANY WRITTEN CONTRACT OF EMPLOYMENT
OF SEAMEN, RAILROAD EMPLOYEES OR ANY OTHER CLASS OF WORKERS ENGAGED IN
FOREIGN OR INTERSTATE COMMERCE IS UNENFORCEABLE AND VOID. ANY SUCH ARBI-
TRATION AGREEMENT SHALL BE CONSIDERED SEVERABLE, AND ALL OTHER
PROVISIONS OF THE EMPLOYMENT CONTRACT SHALL REMAIN IN EFFECT AND GIVEN
FULL FORCE.
(C) PROHIBITION OF ARBITRATION CLAUSES THAT ARE NOT GOVERNED BY FEDER-
AL LAW. ANY MANDATORY ARBITRATION AGREEMENT, OR PORTION THEREOF, IN AN
EMPLOYMENT OR CONSUMER CONTRACT IS INVALID, UNENFORCEABLE AND VOID, WHEN
THE ENFORCEABILITY OF SUCH ARBITRATION AGREEMENT, OR THE PORTION AT
ISSUE, IS GOVERNED BY STATE LAW. ANY SUCH ARBITRATION AGREEMENT SHALL BE
CONSIDERED SEVERABLE, AND ALL OTHER PROVISIONS OF THE EMPLOYMENT
CONTRACT SHALL REMAIN IN EFFECT AND GIVEN FULL FORCE.
A. 6907--A 5
(D) EXCLUSION. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO
AGREEMENTS NEGOTIATED WITH ANY LABOR UNION THROUGH COLLECTIVE BARGAIN-
ING.
§ 7. Enforcement. Any injured private person and any enforcement
agency or official responsible for enforcing the provisions of this act
may bring suit for injunctive relief against an entity that violates
such provisions, and may recover reasonable attorney fees and other
costs if an injunction or equivalent relief is awarded. Injunctive
relief shall be the only relief available in a suit arising from failure
to comply with this act.
§ 8. Severability. If any provision of this act or the application
thereof to any person or circumstance is held invalid, such invalidity
shall not affect other provisions or applications of this act that can
be given effect without the invalid provision or application, and to
that end the provisions of this act are declared to be severable.
§ 9. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.