Bill > A03461

This bill amends New York's civil practice law and rules to add new provisions governing arbitration proceedings, specifically focusing on employment and consumer arbitration. The bill introduces several key protections for employees and consumers in arbitration scenarios. It allows multiple parties to initiate arbitration proceedings in various courts and counties where parties reside or do business. The legislation establishes strict rules about fees and expenses, requiring arbitration providers to immediately issue clear invoices for required fees and giving drafting parties (typically businesses) 30 days to pay. If the drafting party fails to pay fees, they are considered to be in material breach of the arbitration agreement. In such cases, the employee or consumer has multiple options: withdraw the claim and proceed in court, compel arbitration with the drafting party paying attorneys' fees, continue the arbitration if the provider agrees, or pay the fees themselves and recover them later. The bill also mandates that courts impose sanctions on drafting parties who materially breach arbitration agreements, which can include monetary penalties, evidence restrictions, default judgments, or even contempt sanctions. Notably, these provisions do not apply to arbitration agreements in collective bargaining contexts, and the law is designed to provide more balanced and fair arbitration processes for employees and consumers.

Justice

https://www.nysenate.gov/legislation/bills/2025/A3461