Bill > S07799

This bill amends New York state law to require specific notice and disclosure provisions for mandatory arbitration clauses in employment contracts. The bill mandates that when an employment contract contains a mandatory arbitration clause, the employer must clearly explain the clause to the employee in plain language. For contracts signed electronically or through non-personal means (such as internet or mail), the contract must include information at the end indicating the presence of a mandatory arbitration clause, along with an internet link providing a clear explanation of what an arbitration clause entails. An arbitration clause is defined as a decision-making process conducted by an arbitrator or panel of arbitrators. While the bill generally prohibits certain types of arbitration clauses in employment contracts, it does not prevent employers from including non-prohibited arbitration provisions that are mutually agreed upon. If a prohibited arbitration clause is included in a contract, that specific clause will be considered null and void, though the rest of the contract remains enforceable. The goal of this legislation appears to be increasing transparency and ensuring employees fully understand the implications of arbitration clauses before agreeing to them.

Justice

https://www.nysenate.gov/legislation/bills/2025/S7799