Bill > A00093

This bill prohibits mandatory arbitration agreements in consumer and employment contracts by adding a new section to the New York General Business Law. The bill defines key terms, including "consumer dispute" (a dispute between an individual and a seller of goods or services for personal use) and "employment dispute" (a dispute between an employer and employee as defined by the Fair Labor Standards Act). Specifically, the bill invalidates any agreement that requires arbitration of consumer or employment disputes that were not yet in existence when the agreement was made. The legislation argues that such mandatory arbitration clauses are contrary to public policy because they force employees and consumers to agree to arbitration before any dispute arises, effectively denying them a meaningful choice in dispute resolution. The bill extends this prohibition to various contexts, including insurance contracts and employment contracts for certain workers in interstate commerce (such as mariners and railroad employees), with an exception for collective bargaining agreements. The law would render such mandatory arbitration clauses invalid, unenforceable, and void, while keeping the rest of the contract intact. The bill will take effect 180 days after becoming law, providing time for businesses and organizations to adjust to the new requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A93