Bill > H7645

This bill, effective January 1, 2027, makes several changes to arbitration procedures, particularly concerning consumer and employment disputes. It extends the timeframe for a party to request a court to halt an arbitration proceeding, known as a "stay of arbitration," from twenty days to 180 days after being notified of the arbitration. The bill also invalidates any contract provision that penalizes someone for seeking legal representation during arbitration, ensuring parties can have an attorney without facing negative consequences. Furthermore, if a party fails to pay required arbitration fees, the arbitrator must now notify them of this default and give them an opportunity to address the issue or challenge the notice before facing sanctions like waiving their right to arbitration. Importantly, these changes will not apply to arbitration agreements covered by federal law, specifically 9 U.S.C. §§ 1 through 16, which generally pertains to maritime and interstate commerce.

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