What's happening
This bill prohibits state contracts with vendors who require employees to resolve civil rights claims through private arbitration, with some exceptions.
Why it matters
Shifts leverage toward employees in civil rights disputes. by making it harder for vendors with state contracts to require private arbitration—potentially allowing more workers to pursue discrimination claims in public courts, which may lead to greater transparency and accountability.
Creates incentives for vendors to remove arbitration requirements. When selecting among bidders, agencies must favor vendors who do not impose arbitration clauses unless no comparable vendor is available, or the price difference is substantial, potentially impacting which companies win state contracts.
Carves out notable exceptions. The bill does not apply to contracts involving collective bargaining agreements, certain emergency procurements, or contracts with governmental and non-profit organizations, focusing the new restrictions primarily on standard commercial vendors.
Sets up enforcement and consequences. If a contractor is found violating the anti-arbitration stipulation, the state can impose sanctions, seek compliance, recover damages, or declare the contractor in default—raising the stakes for compliance and potentially influencing contractor workplace policies.
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Who cares
State vendors and construction contractors
The bill would condition certain state contract awards on agreeing not to require employees working on those contracts to arbitrate discrimination claims, with violations potentially triggering sanctions, damages or default.
Employees working on state contracts
The bill would limit mandatory private arbitration of claims under Title VII or New York’s Human Rights Law, while exempting arbitration mandated by collective bargaining agreements.
State procurement agencies
Agencies would have to apply the arbitration conditions to covered procurements, document specified noncompetitive award exceptions and review reported contractor violations.
Office of General Services
The commissioner could authorize an award to a compliant bidder offering comparable quality within five percent of the lowest-price or best-value offer when the leading bidder declines the required stipulation.
Headline styles
Ban Forced Arbitration Clauses
Plain English, a few words. Used as the page title.
Sponsors
7 Co-sponsors
5 Multi-sponsors
History
- Referred to governmental operations
- Referred to governmental operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6457
2017-2018 Regular Sessions
IN ASSEMBLY
March 7, 2017
Introduced by M. of A. TITONE, GOTTFRIED, BRONSON, LAVINE, COOK, KAVANAGH, PERRY, WEPRIN, ABINANTI -- Multi-Sponsored by -- M. of A. AUBRY, FINCH, GALEF, GLICK, HOOPER, MOYA -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to arbitration provisions in state contracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 165 of the state finance law is amended by adding a new subdivision 9 to read as follows:
9. Arbitration provision.
a. For the purposes of this subdivision "arbitration provisions" shall mean any requirement that an employee or independent contractor performing work under such vendor's contract or subcontract to submit claims arising under title VII of the civil rights act of 1964 or article fifteen of the executive law to private arbitration for resolution; this shall not include arbitration that is mandated by a collective bargaining agreement between such vendor and employee and/or independent contractor.
b. (i) With respect to contracts described in subparagraphs (ii) and (iii) of this paragraph, and in accordance with such subparagraphs, state agencies as defined in this article shall not contract for the supply of commodities, service or construction with any contractor who does not agree to stipulate to the following, if there is another contractor who will contract to supply commodities, services or construction of comparable quality at a comparable price or cost: the contractor shall not place any arbitration provision upon their employees that work on such contract.
(ii) In the case of contracts let by a competitive process, whenever the responsive and responsible offerer having the lowest price or best value offer has not agreed to stipulate to the conditions set forth in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09173-01-7
A. 6457 2
this subdivision and another responsive and responsible offerer who has agreed to stipulate to such conditions has submitted an offer within five percent of the lowest price or best value offer for a contract to supply commodities, services or construction of comparable quality, the contracting entity shall refer such offers to the commissioner of general services, who may determine, in accordance with applicable law and rules, that it is in the best interest of the state that the contract be awarded to other than the lowest price or best value offer.
(iii) In the case of contracts let by other than a competitive process for goods or services involving an expenditure of an amount greater than the discretionary buying threshold as specified in section one hundred sixty-three of this article, or for construction involving an amount greater than fifteen thousand dollars, the contracting entity shall not award to a proposed contractor who has not agreed to stipulate to the conditions set forth in this subdivision unless the entity seeking to use the commodities, services or construction determines that the commodities, services or construction are necessary for the entity to perform its functions and there is no other responsible contractor who will supply commodities, services or construction of comparable quality at a comparable price. Such determinations shall be made in writing and shall be public documents.
c. Upon receiving information that a contractor who has made the stipulation required by this subdivision is in violation thereof, the contracting entity shall review such information and offer the contractor an opportunity to respond. If the contracting entity finds that a violation has occurred, it shall take such action as may be appropriate and provided for by law, rule or contract, including, but not limited to, imposing sanctions, seeking compliance, recovering damages or declaring the contractor in default.
d. As used in this subdivision, the term "contract" shall not include contracts with governmental and non-profit organizations, contracts awarded pursuant to emergency procurement procedures or contracts, resolutions, indentures, declarations of trust or other instruments authorizing or relating to the authorization, issuance, award, sale or purchase of bonds, certificates of indebtedness, notes or other fiscal obligations, provided that the policies of this subdivision shall be considered when selecting a contractor to provide financial or legal advice, and when selecting managing underwriters in connection with such activities.
§ 2. This act shall take effect immediately and shall apply to all contracts signed and executed on or after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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