S 5425 New York Senate · 2025 Regular Session

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators, and establishes prohibited arbitration agreements and provisions

Summary
Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators; establishes prohibited arbitration agreements and provisions; requires disclosure of information by certain arbitrators.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 21, 2025 Last action Mar 13, 2025
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What changed between versions

S5425 S5425A · 3 edits
MINOR
This bill amends New York's arbitration laws to strengthen protections for consumers and employees by requiring arbitrators to disclose any conflicts of interest before accepting appointments. The changes add a new disclosure requirement for arbitrators and clarify that arbitration agreements requiring non-neutral third parties are void.
Scope change
The bill applies to all arbitration agreements involving employment or consumer disputes in New York State.
REQUIREMENT

New section 7505-a requires arbitrators to disclose any known facts that could affect their impartiality before accepting appointment and continues this obligation throughout the proceedings.

ENFORCEMENT

Added provisions allowing courts to vacate arbitration awards if arbitrators fail to disclose conflicts of interest or if parties object to undisclosed conflicts.

DEFINITION

Clarified that arbitration agreements requiring non-neutral third party arbitrators for employment or consumer disputes are deemed void.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
3
Key actions
2
Committee
1
Amendments
2
Mar 13, 2025
Upper · Passed
PRINT NUMBER 5425A
upper
Mar 13, 2025
Upper · Passed
AMEND AND RECOMMIT TO JUDICIARY
upper
Feb 21, 2025
Committee
REFERRED TO JUDICIARY
upper
1 primary · 0 co-sponsors

Sponsors