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Bill > S08126


NY S08126

NY S08126
Enacts the "mandatory arbitration & business licensing act"; provides that no state agency or local government shall issue or renew a covered license to any person that refuses to certify that such person will not, as the owner or operator of a business or provider of services in the state or a local government operating pursuant to such license; makes related provisions.


summary

Introduced
05/15/2025
In Committee
05/15/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the general business law, in relation to enacting the "mandatory arbitration and business licensing act (MABLA)"

AI Summary

This bill, known as the Mandatory Arbitration and Business Licensing Act (MABLA), establishes new requirements for businesses holding certain state or local government licenses in New York. Specifically, the bill prohibits businesses with covered licenses (which include transportation, food service, firearms sales, medical services, and other industries) from requiring employees to enter mandatory arbitration agreements for employment disputes or forcing consumers to agree to arbitration clauses for consumer disputes as a condition of employment or service. To maintain their license, businesses must certify they will not impose such mandatory arbitration requirements. The bill defines key terms like "consumer," "covered license," and "mandatory arbitration clause" and provides several exceptions, such as not applying to collective bargaining agreements or post-dispute settlements. While the bill does not invalidate existing arbitration agreements, it prevents state and local agencies from issuing or renewing licenses to businesses that mandate arbitration in employment or consumer contracts. Each licensing agency is authorized to create regulations to implement these requirements, and the law will take effect immediately, applying only to licenses issued or renewed after its effective date.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

REFERRED TO CONSUMER PROTECTION (on 05/15/2025)

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