Bill > A08856

This bill enacts the Mandatory Arbitration and Business Licensing Act (MABLA), which prohibits state agencies and local governments from issuing or renewing a "covered license" to businesses that require mandatory arbitration clauses for employees or consumers. Specifically, the bill defines "covered licenses" as those necessary for businesses in sectors like transportation, food and liquor sales, firearms sales, and medical services. Under this legislation, businesses cannot mandate that employees enter arbitration agreements as a condition of employment, nor can they require consumers to agree to arbitration for disputes arising from the purchase of goods or services. The bill provides several important exceptions, including that it does not invalidate existing arbitration agreements, does not prevent license holders from choosing not to renew their licenses, and does not apply to collective bargaining agreements or post-dispute settlement agreements. The law aims to protect employees and consumers by preventing businesses from forcing them into mandatory arbitration, which often limits their legal recourse. The bill will take effect immediately and apply only to licenses issued or renewed after its effective date, and it allows relevant state and local government agencies to develop regulations to implement its provisions.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A8856