Bill > S05425

This bill aims to reform arbitration practices in employment and consumer disputes by establishing new rules and protections. The legislation defines key terms such as "arbitration" as a form of dispute resolution using a neutral third-party arbitrator, and specifies that these arbitrators must not have undisclosed financial or personal interests in the case. The bill prohibits predispute arbitration agreements in employment and consumer contracts, arguing that such agreements force employees and consumers to waive their rights without meaningful choice. It requires arbitrators to disclose potential conflicts of interest before and during the arbitration process, and allows parties to object to or vacate an award if an arbitrator fails to make proper disclosures. The bill also mandates that arbitration awards in employment and consumer cases must include detailed findings of fact and conclusions of law. Enforcement of the law is primarily through injunctive relief, with the possibility of recovering attorney fees, and the legislation is designed to protect individuals from being compelled into arbitration that may not serve their best interests. The law would take effect on the first day of January following its passage.

Justice

https://www.nysenate.gov/legislation/bills/2025/S5425