Bill > A07898

This bill amends New York state law to add new requirements for mandatory arbitration clauses in employment contracts. Specifically, if an employer includes a mandatory arbitration clause in an employment contract, they must now disclose and clearly explain the clause to the employee in plain language. For contracts signed non-personally (such as electronically or by mail), the contract must include information at the end highlighting the mandatory arbitration clause and provide an internet link to a clear explanation of what an arbitration clause means. An arbitration clause is a provision that requires disputes to be resolved through a private decision-making process by an arbitrator or panel of arbitrators, rather than through traditional court litigation. The bill maintains previous protections that make prohibited arbitration clauses null and void, and it ensures that such clauses do not invalidate the entire contract. The goal appears to be increasing transparency and ensuring employees fully understand the implications of agreeing to arbitration before signing employment contracts. The law would apply to contracts entered into on or after the effective date, with an immediate implementation timeline.

Justice

https://www.nysenate.gov/legislation/bills/2025/A7898