S 7799: Requires specific notice of mandatory arbitration clauses in employment contracts.

  
  STATE OF NEW YORK ________________________________________________________________________ 7799 2025-2026 Regular Sessions  IN SENATE 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: 1 Section 1. Paragraph 4 of subdivision (a) and subdivision (b) of 2 section 7515 of the civil practice law and rules, as added by section 1 3 of subpart B of part KK of chapter 57 of the laws of 2018, is amended to 4 read as follows: 5 4. The term "arbitration" shall mean the use of a decision making 6 forum conducted by an arbitrator or panel of arbitrators within the 7 meaning and subject to the provisions of this article [seventy-five of 8 the civil practice law and rules]. 9 (b) (i) Prohibition. Except where inconsistent with federal law, no 10 written contract, entered into on or after the effective date of this 11 section shall contain a prohibited clause as defined in paragraph two of 12 subdivision (a) of this section. 13 (ii) Exceptions. Nothing contained in this section shall be construed 14 to impair or prohibit an employer from incorporating a non-prohibited 15 clause or other mandatory arbitration provision within such contract, 16 that the parties agree upon; provided, however, that in the event that a 17 party is required to sign a contract for employment containing a manda- 18 tory arbitration clause the representative shall disclose the mandatory 19 arbitration clause to the party and clearly explain, in plain language, 20 what an arbitration clause is. If the party is agreeing to a contract by 21 any form of contact that is not personal, including but not limited to, 22 electronically, using the internet or through the mail, such contract 23 shall have, at the end of such contract, information informing the party 24 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 1 link to a valid and plain written explanation of what an arbitration 2 clause is. 3 (iii) Mandatory arbitration clause null and void. Except where incon- 4 sistent with federal law, the provisions of such prohibited clause as 5 defined in paragraph two of subdivision (a) of this section shall be 6 null and void. The inclusion of such clause in a written contract shall 7 not serve to impair the enforceability of any other provision of such 8 contract. 9 § 2. This act shall take effect immediately.