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Senate bill · S3879 (2025-26)

Relates to arbitration proceedings

Latest action Jun 13, 2025

Summary

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.

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Where it stands

Passed one of the two chambers; it still needs the other.

  1. Introduced
  2. In committee
  3. Up for a vote
  4. Passed one chamber
  5. Passed
  6. Enacted

New York State Senate

Same as A3461, the matching bill in the Assembly.

Committee

Judiciary · New York State Assembly

Also referred to Judiciary · New York State Senate.

Purpose, from the sponsor's memo

Section 1: amends CPLR 7502 to add subdivision 5 to read: (v) If there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending. Section 2: The CPLR is amended by adding 3 new sections 7513a & 7513b and 7517 to read 7513-A. Fees and expenses of arbitration initiation (a)(1) In an employ- ment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration provider, the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. (2) After an employee or consumer meets the filing requirements neces- sary to initiate an arbitration, the arbitration provider shall imme- diately provide an invoice for any fees and costs required before the arbitration can proceed to all of the parties to the arbitration.The invoice shall be provided in its entirety, shall state the full amount owed and the date that payment is due, and shall be sent to all parties by the same means on the same day. To avoid delay, absent an express provision in the arbitration agreement stating the number of days in which the parties to the arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to the parties as due upon receipt. (b) If the drafting party materially breaches the arbitration agreement and is in default under subdivision (a), the employee or consumer may do either of the following: (1) Withdraw the claim from arbitration and proceed in a court of appro- priate jurisdiction. (2) Compel arbitration in which the drafting party shall pay reasonable attorney's fees and costs related to the arbitration. (c) If the employee or consumer withdraws the claim from arbitration and proceeds with an action in a court of appropriate jurisdiction under paragraph (1) of subdivision (b), the statute of limitations with regard to all claims brought or that relate back to any claim brought in arbi- tration shall be tolled as of the date of the first filing of a claim in a court, arbitration forum, or other dispute resolution forum. (d) If the employee or consumer proceeds with an action in a court of appropriate jurisdiction, the court shall impose sanctions on the draft- ing party in accordance with Section TKTK. 7513-B. Fees and expenses of arbitration continuance (a) (1) In an employment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration provider, that the drafting party pay certain fees and costs during the pendency of an arbitration proceeding, if the fees or costs required to continue the arbitration proceeding are not paid with- in 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel the employee or consumer to proceed with that arbitration as a result of the material breach. This excludes arbi- tration agreements included in the terms of a collective bargaining agreement. (2) The arbitration provider shall provide an invoice for any fees and costs required for the arbitration proceeding to continue to all of the parties to the arbitration. The invoice shall be provided in its entire- ty, shall state the full amount owed and the date that payment is due, and shall be sent to all parties by the same means on the same day. To avoid delay, absent an express provision in the arbitration agreement stating the number of days in which the parties to the arbitration must pay any required fees or costs, th

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

  • Vote: Floor vote

    NY SenateJun 13, 2025Result: passed

    (39) (20) (0) (4)
  • Vote: Committee vote · Rules

    Senate RulesJun 12, 2025Result: passed

    (18) (2) (0) (1)

The sponsor's argument

Why the sponsor says this is needed

This bill would make it mandatory for companies to pay their fair share of arbitration fees. Arbitration is stalled when companies with mandato- ry arbitration clauses do not pay the fees necessary to move forward. This bill will penalize companies who default on arbitration filing fees. This bill is necessary to protect consumers.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

  1. Jun 13, 2025

    Sent to the executive

    DELIVERED TO ASSEMBLY

    NY Senate

  2. Jun 13, 2025

    Passed a chamber

    PASSED SENATE

    NY Senate

  3. Jun 13, 2025

    Referred to committee

    REFERRED TO JUDICIARY

    NY Assembly

  4. Jun 12, 2025

    In committee

    COMMITTEE DISCHARGED AND COMMITTED TO RULES

    NY Senate

  5. Jun 12, 2025

    Ordered to Third Reading CAL.1969

    ORDERED TO THIRD READING CAL.1969

    NY Senate

Show full history (2 earlier events)
  1. Jun 3, 2025

    Amend and Recommit to Judiciary

    AMEND AND RECOMMIT TO JUDICIARY

    NY Senate

  2. Jan 30, 2025

    Referred to committee

    REFERRED TO JUDICIARY

    NY Senate

About this record

Summary

The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.

Source

From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 1, 2026. About our data

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