Bill > S03879

This bill amends New York's civil practice law to introduce significant protections for employees and consumers in arbitration proceedings. The legislation establishes new rules regarding fees and expenses in employment and consumer arbitration cases, specifically targeting scenarios where the drafting party (typically a company) fails to pay required arbitration fees. If the drafting party does not pay initiation or continuation fees within 30 days of the due date, they are considered to be in material breach of the arbitration agreement. In such cases, the employee or consumer gains several options: they can withdraw the claim and proceed in court, compel arbitration where the drafting party pays attorneys' fees, or continue the arbitration with potential sanctions against the drafting party. The bill also provides that if the claim is withdrawn and pursued in court, the statute of limitations will be tolled. Additionally, the legislation allows courts to impose various sanctions on drafting parties who breach arbitration agreements, including monetary penalties, evidence restrictions, default judgments, and potential contempt of court findings. These provisions aim to level the playing field and prevent companies from using arbitration agreements to unfairly disadvantage employees or consumers.

Justice

https://www.nysenate.gov/legislation/bills/2025/S3879