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Bill > S03868


NY S03868

NY S03868
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
01/30/2025
In Committee
01/30/2025
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 mandatory arbitration agreements and joint-action waivers in workplace disputes, effectively preventing employers from forcing workers to resolve legal claims through private arbitration instead of in court. The bill amends Section 7515 of the civil practice law and rules to comprehensively define and restrict these agreements, applying both to new contracts and existing agreements. Specifically, the bill nullifies any contract, handbook, or policy document that requires employees to arbitrate claims related to discrimination or employment contracts, and it prevents employers from retaliating against workers who refuse to sign such agreements. The legislation introduces strict conditions for any post-dispute arbitration agreements, including requirements that they be voluntary, provide clear written information, allow a 40-day consideration period, and ensure the employee's informed consent. The bill also clarifies that it applies retroactively, meaning pre-existing mandatory arbitration clauses can be deemed unenforceable. Importantly, the law is designed to protect workers' rights to pursue legal action collectively and individually in court, with provisions allowing employees to seek damages and legal fees if they experience retaliation for challenging these arbitration clauses.

Committee Categories

Justice

Sponsors (1)

Last Action

REFERRED TO JUDICIARY (on 01/30/2025)

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