Relates to arbitration proceedings

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.

Summary from NY Open Legislation. How we handle summaries

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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,

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

Where it stands

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

Judiciary · New York State Assembly

Also referred to Judiciary · New York State Senate, Ways and Means · New York State Assembly.

Recorded votes

• Vote: Floor vote

  NY SenateMay 18, 2026Result: passed

  Voted yes (41)Voted no (19)Voted present (0)Absent (3)

  See member positions for the vote on May 18, 2026 (Floor vote)

• Vote: Committee vote · Judiciary

  Senate JudiciaryMay 5, 2026Result: passed

  Voted yes (16)Voted no (3)Voted present (0)Absent (0)

  See member positions for the vote on May 5, 2026 (Committee vote · Judiciary)

Full history

1. May 29, 2026

   Reported out of committee

   REPORTED REFERRED TO RULES

   NY Assembly

2. May 29, 2026

   Rules Report CAL.259

   RULES REPORT CAL.259

   NY Assembly

3. May 29, 2026

   Substituted

   SUBSTITUTED BY S9788

   NY Assembly

4. May 18, 2026

   Sent to the executive

   DELIVERED TO ASSEMBLY

   NY Senate

5. May 18, 2026

   Passed a chamber

   PASSED SENATE

   NY Senate