New York S 9859: Prohibits the enforcement of mandatory arbitration agreements clauses and joint-action waivers with respect to workplace disputes

Bill Text

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S09859 Summary:

BILL NOS09859 

&nbsp

SAME ASSAME AS A01424

&nbsp

SPONSORGOUNARDES

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §7515, CPLR

&nbsp

Prohibits the enforcement of mandatory arbitration agreements clauses and joint-action waivers with respect to workplace disputes; clarifies that section 7515 of the civil practice laws and rules applies retroactively to nullify pre-existing illegal mandatory arbitration clauses.

Go to top S09859 Actions:

BILL NOS09859 

&nbsp

04/09/2026REFERRED TO JUDICIARY

Go to topS09859 Committee&nbspVotes:

Go to topS09859 Floor&nbspVotes:

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

Go to topS09859 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9859

 IN SENATE

 April 9, 2026
 ___________

 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary

 AN ACT to amend the civil practice law and rules, in relation to prohib-
 iting the enforcement of mandatory arbitration agreements clauses and
 joint-action waivers with respect to workplace disputes

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

 1 Section 1. This act shall be known and may be cited as the "Workers'
 2 Rights Enforceability Act".
 3 § 2. Legislative findings. 1. The legislature finds and declares that
 4 the use and enforcement of mandatory arbitration clauses and joint-ac-
 5 tion waivers in cases alleging workplace violations has been and contin-
 6 ues to be contrary to New York public policy. Accordingly, when federal
 7 law does not require enforcement of mandatory arbitration clauses and
 8 joint-action waivers, New York law does not permit their enforcement.
 9 2. The legislature further finds and declares that courts have miscon-
 10 strued previous amendments to section 7515 of the civil practice law and
 11 rules and that such amendments were intended and remain intended to have
 12 retroactive effect and to nullify mandatory arbitration clauses entered
 13 into prior to the original enactment of section 7515 of the civil prac-
 14 tice law and rules.
 15 § 3. Section 7515 of the civil practice law and rules, as added by
 16 section 1 of subpart B of part KK of chapter 57 of the laws of 2018,
 17 paragraphs 2 and 3 of subdivision (a) as amended by chapter 160 of the
 18 laws of 2019, is amended to read as follows:
 19 § 7515. Mandatory arbitration clauses; prohibited. (a) Definitions. As
 20 used in this section:
 21 1. The term "employer" shall have the same meaning as provided in
 22 subdivision five of section two hundred ninety-two of the executive law.
 23 2. The term "prohibited clause" shall mean any mandatory predispute
 24 arbitration clause [or provision] or any mandatory postdispute arbi-
 25 tration clause in any contract, handbook, or other document adopted as
 26 the policy of a covered entity, including a joint-action waiver, which
 27 requires [as a condition of the enforcement of the contract or obtaining

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02080-01-5

 S. 9859 2

 1 remedies under the contract] that the parties submit to mandatory arbi-
 2 tration to resolve any allegation or claim:
 3 (i) of discrimination, in violation of laws prohibiting discrimi-
 4 nation, including but not limited to, article fifteen of the executive
 5 law; or
 6 (ii) arising from, concerning, or related to a contract of employment.
 7 3. The term "mandatory predispute arbitration clause" shall mean a
 8 term or provision [contained in] of a written contract, handbook, or
 9 other document adopted as the policy of a covered entity which requires
 10 the parties [to such contract to submit any matter thereafter arising
 11 under such contract to arbitration prior to the commencement of any
 12 legal action to enforce the provisions of such contract and which also
 13 further provides language to the effect that the facts found or determi-
 14 nation made by the arbitrator or panel of arbitrators in its application
 15 to a party alleging discrimination, in violation of laws prohibiting
 16 discrimination, including but not limited to, article fifteen of the
 17 executive law shall be