Prohibits state contracts with vendors that forbid employees from litigating discrimination or harassment claims

BILL NUMBER:S4438A

Title of bill

An act to amend the state finance law, in relation to arbitration provisions in state contracts

Purpose

To withhold contracts from vendors which prohibit their employees from bringing discrimination or harassment claims through the court system.

Summary of provisions

Amends the State Finance Law by adding a new subdivision 9 to section 165 which prohibits agencies from entering into a contract with any vendor which mandates that an employee or independent contractor performing work under the contract or subcontract resolve through private arbitration any claim under title VII of the Civil Rights Act of 1964 or the NYS Human Rights Act. The subdivision also allows an agency to waive this requirement but the reasons for the waiver are public documents.

Justification

Currently, most large employers have binding arbitration clauses that an employee must sign to get or even keep their job. These clauses require they bring any claim to arbitration, with the arbitrator's decision being binding. The decision to participate in this is made before an issue arise, employees are waiving their rights before they even know what their rights are.

These clauses are written by the employer to favor them in disputes with their own employees. Now, over twenty percent of all employees are subject to employer imposed forced arbitration. Most of these are written by the Company lawyers with no negotiation on the terms and employees have no choice but to sign them or compromise their job.

A cornerstone of enforcement of employment and labor laws is the an employee right to the have their claim heard in a court of law. These rights include requiring employers to pay overtime to employees working more than 40 hours in a week; protecting against discrimination and harassment on the basis of race, color, national origin, sex, religion, age, and disability; and guaranteeing jobs after military or reserve service or family and medical leave. The system of due process created by our courts consist of an impartial judge, provided by the government, who vows to follow the law and give reasoned opinions; a jury of one's peers; uniform, established procedures governing the case; open, public proceedings; recorded decisions that have precedential value; and the availability of appeals from adverse rulings.

Legislative history

2011-12:S. 5802 Finance/A. 7001-A Passed Assembly

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall apply to all contracts signed and executed on or after such effective date.