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NY S03879

Bill

Status

Engrossed

6/13/2025

Primary Sponsor

Brad Hoylman-Sigal

Click for details

Origin

Senate

2025-2026 General Assembly

AI Summary

  • Establishes that in employment or consumer arbitration, if the drafting party (typically the employer or business) fails to pay required arbitration fees within 30 days of the due date, they are in material breach and waive their right to compel arbitration

  • Allows employees or consumers to withdraw claims from arbitration and proceed in court if the drafting party defaults on fee payments, with the statute of limitations tolled from the date of original filing

  • Requires arbitration providers to immediately send invoices to all parties stating the full amount owed and due date, with invoices due upon receipt unless the agreement specifies otherwise

  • Mandates courts impose monetary sanctions on drafting parties that materially breach arbitration agreements, including payment of reasonable attorneys' fees and costs incurred by employees or consumers

  • Authorizes additional sanctions for material breach including evidence sanctions (prohibiting discovery), terminating sanctions (striking pleadings or default judgment), and contempt of court orders

Legislative Description

Amends provisions of law governing arbitration proceedings; specifies fees and expenses with regard to employment or consumer arbitration proceedings; directs certain sanctions on a party which breaches an arbitration agreement.

Last Action

referred to judiciary

6/13/2025

Committee Referrals

Judiciary6/13/2025
Rules6/12/2025
Judiciary1/30/2025

Full Bill Text

No bill text available