New York S 5425: Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators, and establishes prohibited arbitration agreements and provisions

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S05425 Summary:

BILL NOS05425A

&nbsp

SAME ASSAME AS A06907

&nbsp

SPONSORHOYLMAN-SIGAL

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 75 §7500, §§7505-a, 7517 & 7518, amd §§7501, 7506, 7507 & 7511, CPLR

&nbsp

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators; establishes prohibited arbitration agreements and provisions; requires disclosure of information by certain arbitrators.

Go to top S05425 Actions:

BILL NOS05425A

&nbsp

02/21/2025REFERRED TO JUDICIARY

03/13/2025AMEND AND RECOMMIT TO JUDICIARY

03/13/2025PRINT NUMBER 5425A

Go to topS05425 Committee&nbspVotes:

Go to topS05425 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05425 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5425--A

 2025-2026 Regular Sessions

 IN SENATE

 February 21, 2025
 ___________

 Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
 when printed to be committed to the Committee on Judiciary -- commit-
 tee discharged, bill amended, ordered reprinted as amended and recom-
 mitted to said committee

 AN ACT to amend the civil practice law and rules, in relation to arbi-
 tration agreements

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Article 75 of the civil practice law and rules is amended
 2 by adding a new section 7500 to read as follows:
 3 § 7500. Definitions. As used in this article:
 4 (a) "Arbitration" means a form of dispute resolution that is an alter-
 5 native to litigation, in which the parties agree to be bound by the
 6 determination of a neutral third party arbitrator.
 7 (b) "Neutral third party arbitrator" means an arbitrator or panel of
 8 arbitrators each of whom does not have an undisclosed known, direct or
 9 material interest, including a financial or personal interest in the
 10 outcome of the arbitration proceeding, or a known, existing or past
 11 relationship with any of the parties to the agreement to arbitrate or
 12 the arbitration proceeding, their counsel or representatives, a witness,
 13 or another arbitrator.
 14 (c) "Employment" means a relationship between an employer and an
 15 employee as defined in section three of the Fair Labor Standards Act of
 16 1938 (29 U.S.C. § 203).
 17 (d) "Consumer" means a natural person residing in this state.
 18 (e) "Consumer goods" means goods, wares, paid merchandise or services
 19 purchased or paid for by a consumer, the intended use or benefit of
 20 which is intended for the personal, family or household purposes of such
 21 consumer.
 22 § 2. Section 7501 of the civil practice law and rules, as amended by
 23 chapter 532 of the laws of 1963, is amended to read as follows:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07891-02-5

 S. 5425--A 2

 1 § 7501. Effect of arbitration agreement. A written agreement to
 2 submit any controversy thereafter arising or any existing controversy to
 3 arbitration is enforceable without regard to the justiciable character
 4 of the controversy and confers jurisdiction on the courts of the state
 5 to enforce it and to enter judgment on an award; provided, however, that
 6 any portion of an agreement or contract requiring the controversy
 7 concerning employment or the providing of consumer goods be submitted to
 8 an arbitrator or arbitration organization that is not a neutral third
 9 party arbitrator, shall be deemed void. The requirement that the
 10 controversy be heard by a neutral third party arbitrator may not be
 11 waived by a party prior to the service on such party of a demand for
 12 arbitration. Upon disclosure pursuant to section seventy-five hundred
 13 five-a of this article, a party shall be deemed to have waived any
 14 objection to the arbitrator or composition of any arbitration panel, by
 15 failing to raise same prior to the commencement of the arbitration hear-
 16 ing. In determining any matter arising under this article, the court
 17 shall not consider whether the claim with respect to which arbitration
 18 is sought is tenable, or otherwise pass upon the merits of