NY State Assembly Bill 2009-A10730

Assembly Bill A10730

2009-2010 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 16, 2010	referred to governmental operations

2009-A10730 (ACTIVE) - Details

See Senate Version of this Bill:: S6723
Current Committee:: Assembly Governmental Operations
Law Section:: Executive Law
Laws Affected:: Add §170-c, Exec L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A6125, S1729
2013-2014: A2628, S1840
2015-2016: A5795, S2452
2017-2018: A4180, A8981, S2298
2019-2020: A1770, S4265
2021-2022: A2112, S4659
2023-2024: S5277

2009-A10730 (ACTIVE) - Summary

Prohibits the state from entering into certain contracts with companies requiring employees to stipulate to binding arbitration for all disputes unless it excludes disputes involving sexual assault.

2009-A10730 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A10730

TITLE  OF  BILL:    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

PURPOSE: To prohibit the state from entering into contracts, or renewing
contracts,  with certain companies requiring employees to agree to bind-
ing arbitration contracts for all disputes, including but not limited to
sexual assaults.

SUMMARY OF PROVISIONS:  Section 1 of the bill amends the  executive  law
by  adding  a  new  section  170-c,  which would prohibit the state from
entering into contracts, or renewing contracts, with  certain  companies
requiring  employees  to  agree to binding arbitration contracts for all
disputes, including but not limited to sexual assaults.

Section 2 of the bill sets forth the effective date.

JUSTIFICATION:  Many companies require workers  to  sign  binding  arbi-
tration  agreements as part of their employment contracts, which require
employees to forego their right to seek legal remedies for all  disputes
with the employer, including those arising from sexual assault and other
assaults.

Workers who are sexually assaulted while working for defense contractors

overseas  typically  have  few options. They cannot bring charges in the
country where the crime was committed, and binding  arbitration  clauses
often bar them from using courts in the United States.

In one of the most infamous cases arising from this practice of overseas
contractors  for  defense corporations, Jamie Leigh Jones, a 20-year-old
employee of defense contractor KBR who was stationed in Iraq, stated she
was gang raped by her co-workers and imprisoned in a shipping  container
when  she  tried  to  report the crime. Her father and her Congressional
Representative fought to secure her safe return to  the  United  States,
but once home, Ms. Jones learned a fine-print clause in her KBR contract
banned  her  from  taking her case to court, instead forcing her into an
"arbitration" process that would be run by KBR  itself.  Ms.  Jones  was
forced  to  go  to  court to sue for the right to sue, and after several
years of litigation, she received a favorable ruling,  allowing  her  to
seek justice. She has been pursuing the matter in court since 2005.

In  2008,  a  number of female employees of overseas defense contractors
testified before the U.S. Senate Armed Services Committee. According  to
Senator Bill Nelson of Florida, who cited Defense Department statistics,
more  than  two  dozen  female  contractor employees working in Iraq and
Afghanistan have reported being raped or sexually assaulted. (See, "Iraq
Rape Claims Push Senate Panel to Act," The Blotter from Brian Ross,  ABC
News, abcnews.go.com/blotter/ story?id=4766673, last visited January 28,
2010.) One of the women testifying, Dawn Learnon, a mother of two active
duty  military personnel, stated she was drugged and brutally gang-raped

by soldiers and co-workers. She said KBR's employee  assistance  program
discouraged her from filing a formal report, saying, "You know what will
happen  if  you  do,"  and failed to protect her from her alleged assai-
lants.    (See,  "Military Mom Says she was brutally raped in Iraq," The
Blotter        from        Brian         Ross,         ABC         News,
abcnews.go.com/Blotter/story?id=4618275&page=1, last visited January 28,
2010.)

By  barring contractors who require their employees to sign such binding
arbitration agreements from contracting with the State of New York, this
state will step forward and help end this  practice  and  the  abhorrent
behavior that it protects, helping to bring justice to employees who are
unable to find justice under current law and practice.

LEGISLATIVE  HISTORY: This is a new bill in the Assembly, same as S06723
in the Senate.

FISCAL IMPACT: Not yet determined.

EFFECTIVE DATE: This act shall take effect immediately.

2009-A10730 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10730

                          I N  A S S E M B L Y

                             April 16, 2010
                               ___________

Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
  tee 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 ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The executive law is amended by adding a new section  170-c
to read as follows:
  S  170-C. PROHIBITING THE STATE AND CERTAIN STATE ENTITIES FROM ENTER-
ING INTO CONTRACTS WITH CERTAIN COMPANIES REQUIRING EMPLOYEES TO  STIPU-
LATE  TO  BINDING  ARBITRATION AGREEMENTS. 1. NOTWITHSTANDING ANY INCON-
SISTENT 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
MULTI-STATE AUTHORITIES, PUBLIC BENEFIT CORPORATIONS, AND COMMISSIONS AT
LEAST  ONE OF WHOSE MEMBERS IS APPOINTED BY THE GOVERNOR, NOR THE LEGIS-
LATIVE 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 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15132-03-0

A. 10730                            2

BINDING  ARBITRATION AGREEMENTS FOR ALL DISPUTES UNLESS DISPUTES INVOLV-
ING 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 CONTRACT-
ING PARTY AND MADE A PART OF ITS CONTRACT FILE.
  3. UPON RECEIVING INFORMATION THAT A CONTRACTOR WHO HAS MADE THE STIP-
ULATION 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,  DECLAR-
ING  THE  CONTRACTOR  IN DEFAULT, AND SEEKING DEBARMENT OR SUSPENSION OF
THE CONTRACTOR.
  S 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.
  S 3. This act shall take effect immediately.

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