Bill

Bill > A01424


NY A01424

Prohibits the enforcement of mandatory arbitration agreements clauses and joint-action waivers with respect to workplace disputes; clarifies that section 7515 of the civil practice laws and rules applies retroactively to nullify pre-existing illegal mandatory arbitration clauses.


summary

Introduced
01/09/2025
In Committee
01/09/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the civil practice law and rules, in relation to prohibiting the enforcement of mandatory arbitration agreements clauses and joint-action waivers with respect to workplace disputes

AI Summary

This bill, known as the "Workers' Rights Enforceability Act," prohibits the enforcement of mandatory arbitration clauses and joint-action waivers in workplace disputes across New York state. The legislation broadly defines these terms to include any contract, handbook, or policy that requires employees to resolve workplace discrimination claims or employment-related disputes through arbitration, and prevents employers from forcing workers to waive their rights to participate in class or collective actions. The bill clarifies that these prohibitions apply both to new contracts and retroactively to existing agreements, meaning that pre-existing mandatory arbitration clauses are now unenforceable. Importantly, the law provides specific conditions under which a post-dispute arbitration clause might be permissible, such as requiring that it be voluntary, not coerced, separately negotiated, and accompanied by clear written disclosure and a waiting period. The bill also protects workers from retaliation if they refuse to agree to such arbitration clauses, allowing them to file civil actions with potential remedies including damages and attorneys' fees. The legislation is designed to ensure that workers maintain their rights to pursue legal action in court for workplace disputes and discrimination claims, effectively limiting employers' ability to mandate private arbitration.

Committee Categories

Justice

Sponsors (1)

Last Action

referred to judiciary (on 01/09/2025)

bill text


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