NY State Senate Bill 2025-S7799

Current Bill Status - In Senate Committee Judiciary 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 09, 2025	referred to judiciary

2025-S7799 (ACTIVE) - Details

See Assembly Version of this Bill:: A7898
Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §7515, CPLR

2025-S7799 (ACTIVE) - Summary

Requires specific notice of mandatory arbitration clauses in employment contracts.

2025-S7799 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7799

SPONSOR: COMRIE
 
TITLE OF BILL:

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

 
PURPOSE:

This bill would require representatives of companies responsible for
administering a contract for employment to disclose the existence of any
mandatory arbitration clause contained within the contract, and clearly
explain what a mandatory arbitration clause is.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends paragraph 4 of subdivision (a) of § 7515
of the civil practice law and rules to require companies to disclose any
mandatory arbitration clause in a contract for employment to which a
party is required to sign and to clearly explain, in writing, what an
arbitration clause is. If the party agrees to a contract by a means that

is not in person, they must be provided information notifying them that
they are signing a mandatory arbitration clause and a web link to a
clear explanation of what an arbitration clause is.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

As mandatory arbitration clauses in contracts for employment have become
more and more commonplace, consumers are increasingly forced to resolve
disputes via arbitration. In many cases, a party may be unaware that the
contract they are signing requires them to resolve disputes through
arbitration, and not through the court system. They are in effect
unknowingly signing away the right to their "day in court."

Questions have been raised about the fairness of the arbitration.
Private arbitration companies have a financial incentive to rule in
favor of the business that is paying for their services. Given these
questions, it is appropriate to clearly disclose the existence of an
arbitration clause in a contract and ensure that the parties signing an
contract with a mandatory arbitration clause understands the meaning and
ramification of the clause before agreeing to sign the contract.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effective date immediately.

2025-S7799 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7799
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                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:
 
   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
 S. 7799                             2

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

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Senate Bill S7799

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee

2025-S7799 (ACTIVE) - Details

2025-S7799 (ACTIVE) - Summary

2025-S7799 (ACTIVE) - Sponsor Memo

2025-S7799 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7799

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Judiciary Committee

2025-S7799 (ACTIVE) - Details

2025-S7799 (ACTIVE) - Summary

2025-S7799 (ACTIVE) - Sponsor Memo

2025-S7799 (ACTIVE) - Bill Text download pdf

Comments