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A1770Assembly2019-2020 SessionSame asS4265

Ban Forced Arbitration Contracts

Official title

“Prohibits the state from entering into certain contracts with companies requiring employees to stipulate to binding arbitration for all disputes”

Sponsor Jo Anne SimonAD-52+18 co-sponsors
Status
In Assembly Committee
Governmental Operations
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Governmental Operations

What's happening

This bill prohibits New York State from contracting with companies that require employees to agree to binding arbitration for all disputes, except those involving assault.

Why it matters

  1. Limits state spending power to promote fairer workplace dispute resolution. By refusing to contract with companies that mandate binding arbitration for all disputes (except assault), New York aims to push businesses toward allowing employees access to courts and other remedies, potentially increasing employer accountability and transparency.

  2. Direct impact on contractors and their affiliates. The law extends not just to direct contractors, but also to subsidiaries, franchisers, and subcontractors, meaning companies must ensure their entire supply chain complies, or risk losing state contracts.

  3. Enforcement mechanisms with teeth. Contractors must certify compliance, and if found in violation, they face a range of penalties, including sanctions, damages, contract termination, and possible debarment from future contracts—raising the stakes for compliance.

  4. Could influence broader business practices. As New York is a major government purchaser, this requirement may prompt companies that do business with the state to change their employment contracts nationwide, not just for New York-related work, potentially affecting worker rights more broadly.

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Who cares

  • Overseas contractors supplying state goods, services or construction

    They would have to agree not to use employment contracts requiring binding arbitration for all disputes unless sexual assault and other assault disputes are excluded to obtain or renew covered contracts.

  • Contractors’ subsidiaries, franchisers and subcontractors

    They would be subject to the arbitration restriction and required to certify compliance for the state contracting party’s contract file.

  • Employees of covered contractors and related companies

    The bill would require assault disputes to be excluded from otherwise all-disputes binding arbitration clauses in their employment contracts.

  • State contracting agencies, SUNY and CUNY

    Covered entities would have to enforce the contract condition, review reported violations and pursue appropriate remedies if they find a violation.

Headline styles

Ban Forced Arbitration Contracts

Plain English, a few words. Used as the page title.

Sponsors

History

  1. Referred to governmental operations
  2. Referred to governmental operations

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

S4265Senate

Ban Forced Arbitration Contracts

In Senate Committee · Finance · Sponsor Kevin S. Parker

Impact 6 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1770

2019-2020 Regular Sessions

IN ASSEMBLY

January 17, 2019

Introduced by M. of A. SIMON, D'URSO, ZEBROWSKI, GOTTFRIED, PICHARDO, DICKENS, GALEF, LAVINE, GLICK, HYNDMAN, ABINANTI, RICHARDSON, DAVILA, WRIGHT, SEAWRIGHT, RIVERA, WALLACE -- read once and referred to the Committee on Governmental Operations

AN ACT to amend the executive law, in relation to prohibiting the state from entering into contracts with companies requiring employees to stipulate to binding arbitration for all disputes

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

Section 1. The executive law is amended by adding a new section 170-c to read as follows:

§ 170-c. Prohibiting the state and certain state entities from entering into contracts with certain companies requiring employees to stipulate to binding arbitration agreements. 1. Notwithstanding any inconsistent provisions of any general or special law or resolution, neither the state nor any state agency including: (i) any state department, or (ii) any division, board, commission, or bureau of any state department, or (iii) the state university of New York and the city university of New York, including all their constituent units, except community colleges and the independent institutions operating statutory or contract colleges on behalf of the state, or (iv) a board, a majority of whose members are appointed by the governor or who serve by virtue of being state officers or employees as defined in subparagraph (i), (ii) or (iii) of paragraph (i) of subdivision one of section seventy-three of the public officers law, (v) any public authority, other than multistate authorities, public benefit corporations, and commissions at least one of whose members is appointed by the governor, nor the legislative and judicial branches of government, nor any fund of any of the foregoing, nor any officer of any of the foregoing, shall contract or renew a contract for the supply of goods, services, or construction with any overseas contractor who does not agree to stipulate to the following as

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01801-01-9

A. 1770 2

a material condition of the contract: the contractor, any subsidiary of a contractor, any franchiser of the contractor, and any subcontractor to be employed by the contractor shall not utilize an employment contract containing clauses which require employees to stipulate to binding arbitration agreements for all disputes unless disputes involving sexual assault or other assault are excluded.

2. Any contractor, any subsidiary of a contractor, franchiser of the contractor, and any subcontractor to be employed by the contractor shall certify that it is in compliance with the requirements of this section. Such certification shall be filed with the state governmental contracting party and made a part of its contract file.

3. Upon receiving information that a contractor who has made the stipulation and certification required by this section is in violation thereof, the state governmental contracting party shall review such information and offer the contractor an opportunity to respond. If the state governmental contracting party finds that a violation has occurred, it shall take such action as may be appropriate and provided for by law, rule or regulation, or contract, including, but not limited to, imposing sanctions, seeking compliance, recovering damages, declaring the contractor in default, and seeking debarment or suspension of the contractor.

§ 2. If any provision of this act or the application thereof is held invalid, the remainder of this act and the application thereof to other persons or circumstances shall not be affected by such holding and shall remain in full force and effect.

§ 3. This act shall take effect immediately.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.