Senate Bill S9791

2025-2026 Legislative Session

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators, and establishes prohibited arbitration agreements and provisions

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 06, 2026	referred to judiciary

2025-S9791 (ACTIVE) - Details

See Assembly Version of this Bill:: A6907
Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Add Art 75 §7500, §§7505-a, 7517 & 7518, amd §§7501, 7506, 7507 & 7511, CPLR
Versions Introduced in Other Legislative Sessions:: 2015-2016: A8191
2017-2018: A6983
2019-2020: S3684, A3265
2021-2022: S697, A1464
2023-2024: S3259, A706

2025-S9791 (ACTIVE) - Summary

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators; establishes prohibited arbitration agreements and provisions; requires disclosure of information by certain arbitrators.

2025-S9791 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9791

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

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

 
PURPOSE:

This bill would clearly define the term "neutral third party' arbitrator
and void any agreement or contract that does not require any disputed be
submitted to a neutral third party arbitrator. The bill also would
require a series of disclosures by an arbitrator that may impact his or
her impartiality.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends the civil practice law and rules by adding a new
section 7500, providing definitions.

Section 2. Amends section 7501 of the civil practice law and rules to

ensure arbitrator neutrality and objectivity.

Section 3. Amends the civil practice law and rules by adding a new
section 7505-a, requiring potential arbitrators to make specific disclo-
sures to ensure their neutrality and objectivity.

Section 4. Amends section 7506 of the civil practice law and rules
outlining new provisions to ensure fairness and objectivity in arbi-
tration proceedings.

Section 5. Amends Section 7507 of the civil practice law and rules to
enact new provisions related to arbitration awards, requiring arbitra-
tors to state the issues in dispute and a basis for their findings.

Section 6. Amends Section 7511 of the civil practice law and rules to
allow awards to be vacated if a manifest disregard of the law is demon-
strated.

Section 7. Amends the civil practice law and rules by adding new
sections 7516 and 7517, together providing definitions, prohibitions,
and requirements for specific arbitration cases.

Section B. Provides provisions for enforcement of the provisions of this
act.

Section 9. provides for severability of the provisions of this act.

Section 10. Provides the effective date.

 
JUSTIFICATION:

"Forced arbitration" or "mandatory arbitration" clauses are fine-print
terms included in contracts of adhesion - often contracts between an
employee and her employer or a consumer and a merchant - that, in the
case of consumer and employment contracts in non-unionized workplaces,
require the consumer or employee to give up her right to assert claims
against the merchant or employer in court as a condition of obtaining or
keeping her job or using the consumer goods or services. These clauses
are prevalent in a number of types of contracts including, among others,
cellphone contracts, and employment contracts in non- union workplaces.
Instead of providing employees and consumers with access to state or
federal court or administrative agencies, these clauses purport to
provide employees and consumers with a private forum to resolve their
claims against the company. But in actuality many consumers and employ-
ees are never actually able to access this alternative, private forum,
because forced arbitration clauses also often require the employee or
consumer to pursue her claims individually, without the benefit of class
or collective action procedures that many consumers and employees rely
on to assert their rights. Moreover, some clauses require the consumer
or employee to pay exorbitant arbitration fees or even to arbitrate in a
far-off forum. This bill builds upon the proscription against mandatory
arbitration clauses which is contained in General Business Law
Sec.399-c.

The presumption that an arbitration clause is enforceable has, however,
become a sword to wield against parties of lesser means rather than a
shield to protect against unnecessary litigation.  Currently, a party
must prove, either during the course of misconduct by the arbitrator or
after an award by an arbitrator is perceived to be unfair, that the
arbitrator was biased even if the arbitrator clearly has an economic
stake in the outcome of the dispute. This outcome is in direct oppo-
sition to the reasons (efficiency and fairness) why arbitration is
favored. As arbitration is commonly thought to be a dispute resolution
procedure that occurs in front of a neutral third party, codifying it as
such will enforce the original intent of the law.

Even when the employee or consumer is able - or required - to pursue
their claims in arbitration, they often finds that the deck is stacked
against them. The arbitration process is secret, and arbitrators are
often subject to "repeat player" bias in favor of the business and
against the employee or consumer, because the business is the entity
appearing in front of the arbitrator most frequently and is the one
paying the arbitrator's salary. What is more, under both state and
federal law, the right to vacate an arbitrator's decision is extremely
limited. A consumer or employee cannot obtain relief on a challenge to
an arbitrator's decision even when the arbitrator is clearly wrong on
the facts or the law. This bill requires that an arbitrator in such
matters state the basis for her decision, which is modeled after 11
NYCRR 65-4.5 (s), which has been used in no-fault insurance arbitrations
for many years.  The bill also allows an arbitration award to be vacated
because of an arbitrator's manifest disregard of the law. This latter
standard is used in arbitrations which are sought to be vacated pursuant
to federal law.  See, Schwartz v. Merrill Lynch & Co., Inc. 665 F.3d 444
(2011).Likewise for the provisions in the bill that call for arbitrators
to provide basic conflict disclosure. Given the high bar presently
contained in CPLR 7511 (b)(1)(ii), it is very difficult to establish
arbitrator partiality. This bill sets affirmative requirements for arbi-
trators concerning disclosure of conflicts.

For the most part, businesses are allowed to write their contracts in a
way which is not consumer or employee-friendly, because of the Supreme
Court's recent interpretations of the Federal Arbitration Act (FAA), a
law that has been on the books for over 90 years. Although Congress's
purpose in enacting the FAA was to allow companies, bargaining at arm's-
length, to settle on an alternative dispute resolution forum, a series
of recent Supreme Court decisions have expanded the Act's reach to cover
almost all employment and consumer contracts, whether or not the parties
actually bargained over the term. As a result, given these judicial
interpretations, and given that mandatory arbitration may well be a more
common occurrence in New York State, it is felt that procedural modifi-
cations to the way arbitrations are conducted, such as set forth in this
bill and in away that they comport with the FAA, are warranted. In addi-
tion, the bill makes it clear that arbitration clauses in contracts
exempted under federal law or not governed by federal law in the first
instance, are not preempted by federal law, and proscribed. Finally, the
bill specifically provides that it shall not apply to collectively
bargained agreements with unions, so as not to upset the delicate
balance that is had in agreements typically negotiated by lawyers for
both sides, as contrasted to the typically non-negotiated agreement
between businesses and employers and consumers.

 
LEGISLATIVE HISTORY:

S.5425A of 2025(Hoylman-Sigal): Died in Judiciary

S. 3259 of 2024 (Hoylman-Sigal): Died in Judiciary

S.0697-A of 2022 (Hoylman-Sigal): Died in Judiciary

S.3684 of 2020 (Holyman-Sigal): Died in Judiciary

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

2025-S9791 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9791
 
                             I N  S E N A T E
 
                               April 6, 2026
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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 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 A FORM OF DISPUTE RESOLUTION THAT IS AN ALTER-
 NATIVE TO LITIGATION, IN WHICH THE PARTIES AGREE  TO  BE  BOUND  BY  THE
 DETERMINATION OF A NEUTRAL THIRD PARTY ARBITRATOR.
   (B)  "NEUTRAL  THIRD PARTY ARBITRATOR" MEANS AN ARBITRATOR OR PANEL OF
 ARBITRATORS EACH OF WHOM 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).
   (D) "CONSUMER" MEANS A NATURAL PERSON RESIDING IN THIS STATE.
   (E) "CONSUMER GOODS" MEANS GOODS, WARES, PAID MERCHANDISE OR  SERVICES
 PURCHASED  OR  PAID  FOR  BY  A CONSUMER, THE INTENDED USE OR BENEFIT OF
 WHICH IS INTENDED FOR THE PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OF SUCH
 CONSUMER.
   § 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 thereafter arising or any existing controversy to
 arbitration is enforceable without regard to the  justiciable  character
 of  the  controversy and confers jurisdiction on the courts of the state
 to enforce it and to enter judgment on an award; PROVIDED, HOWEVER, THAT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07891-03-5
 S. 9791                             2
 
 ANY PORTION OF  AN  AGREEMENT  OR  CONTRACT  REQUIRING  THE  CONTROVERSY
 CONCERNING EMPLOYMENT OR THE PROVIDING OF CONSUMER GOODS BE SUBMITTED TO
 AN  ARBITRATOR  OR  ARBITRATION ORGANIZATION THAT IS NOT A NEUTRAL THIRD
 PARTY  ARBITRATOR,  SHALL  BE  DEEMED  VOID.    THE REQUIREMENT THAT THE
 CONTROVERSY 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
 ARBITRATION. 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 OR COMPOSITION OF ANY ARBITRATION PANEL,  BY
 FAILING TO RAISE SAME PRIOR TO THE COMMENCEMENT OF THE ARBITRATION HEAR-
 ING.  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. (A) BEFORE ACCEPTING APPOINTMENT,
 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.
   (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,  THE
 COURT MAY VACATE AN AWARD BASED ON SUCH NON-DISCLOSURE.
   (E)  AN  ARBITRATOR  APPOINTED  AS  A  NEUTRAL ARBITRATOR WHO DOES NOT
 DISCLOSE A KNOWN, DIRECT AND MATERIAL INTEREST IN  THE  OUTCOME  OF  THE
 ARBITRATION PROCEEDING OR A KNOWN, EXISTING AND SUBSTANTIAL RELATIONSHIP
 WITH  A PARTY IS PRESUMED TO ACT WITH EVIDENT PARTIALITY IN RENDERING AN
 AWARD.
   § 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.
 S. 9791                             3
 
   (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),  a
 requirement  of  this  section  may  be waived by written consent of the
 parties and it is waived if the parties continue  with  the  arbitration
 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  A  MATTER  INVOLVING A CONSUMER ARBITRATION OR AN ARBITRATION
 BETWEEN AN EMPLOYER AND AN EMPLOYEE, AS DEFINED IN SECTION THREE OF  THE
 FAIR  LABOR  STANDARDS  ACT OF 1938 (29 U.S.C. § 203), WHERE ARBITRATION
 WAS HELD PURSUANT TO A CONTRACT, THE AWARD SHALL  STATE  THE  ISSUES  IN
 DISPUTE  AND SHALL CONTAIN THE ARBITRATOR'S FINDINGS OF FACT AND CONCLU-
 SIONS OF LAW. THE AWARD SHALL CONTAIN A DECISION ON ALL ISSUES SUBMITTED
 TO THE ARBITRATOR.
   (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
 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. Subparagraph (iv) of paragraph 1 of subdivision  (b)  of  section
 7511  of  the civil practice law and rules is amended and a new subpara-
 graph (v) is added to read as follows:
 S. 9791                             4
 
   (iv) failure to follow the procedure of this article, unless the party
 applying to vacate the award continued with the arbitration with  notice
 of the defect and without objection[.]; OR
   (V)  THE  ARBITRATOR  EVIDENCED  A  MANIFEST  DISREGARD  OF THE LAW IN
 RENDERING THE AWARD.
   § 7. 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).
   (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,
 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.
   (D) EXCLUSION. THE PROVISIONS OF  THIS  SECTION  SHALL  NOT  APPLY  TO
 AGREEMENTS  NEGOTIATED  WITH ANY LABOR UNION THROUGH COLLECTIVE BARGAIN-
 ING.
   § 8. Enforcement.  Any private person and any  enforcement  agency  or
 official  responsible for enforcing the provisions of this act may bring
 S. 9791                             5
 
 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.
   § 9. 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.
   § 10. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.

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Senate Bill S9791

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Current Bill Status - In Senate Committee Judiciary Committee

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2025-S9791 (ACTIVE) - Details

2025-S9791 (ACTIVE) - Summary

2025-S9791 (ACTIVE) - Sponsor Memo

2025-S9791 (ACTIVE) - Bill Text download pdf

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Sponsored By

Luis R. Sepúlveda

Current Bill Status - In Senate Committee Judiciary Committee

Actions

2025-S9791 (ACTIVE) - Details

2025-S9791 (ACTIVE) - Summary

2025-S9791 (ACTIVE) - Sponsor Memo

2025-S9791 (ACTIVE) - Bill Text download pdf

Comments