NY State Senate Bill 2017-S2298

Senate Bill S2298

2017-2018 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Finance 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to finance
Jan 12, 2017	referred to finance

co-Sponsors

2017-S2298 (ACTIVE) - Details

See Assembly Version of this Bill:: A8981
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add §170-c, Exec L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6723, A10730
2011-2012: S1729, A6125
2013-2014: S1840, A2628
2015-2016: S2452, A5795
2019-2020: S4265, A1770
2021-2022: S4659, A2112
2023-2024: S5277

2017-S2298 (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.

2017-S2298 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2298

 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 OR GENERAL IDEA OF BILL :

To 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.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 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.

 JUSTIFICATION :

Many companies require workers to sign binding arbitration 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 the binding
arbitration clause bars 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-yr-old employee of defense contractor ICIER, 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 congressman 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 get justice,
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 Sen. 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.
One of the women testifying, Dawn Leaman, a mother of two active duty
military personnel, stated she was drugged and brutally gang-raped by
soldiers and coworkers. She said KBR's employee assistance Program
discouraged her from filing a formal report.

It is time the State of New York took measures to end this abhorrent
behavior and help the employees assaulted overseas to gain justice.
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 protect the employees who
are unable to find justice under current law and practice.

 PRIOR LEGISLATIVE HISTORY :

2015-16: S .2452/5795 - Referred to Finance
2013-14: S. 1840/A.2628 - Referred to Finance/Infrastructure and
Capital Investment
2011-12: S .1729/A.6125 - Referred to Finance

 FISCAL IMPLICATIONS :

Indeterminate.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S2298 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2298
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by  Sens. PARKER, KRUEGER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Finance
 
 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:
   § 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  LEGISLATIVE
 AND  JUDICIAL BRANCHES OF GOVERNMENT, NOR ANY FUND OF ANY OF THE FOREGO-
 ING, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02726-01-7

 S. 2298                             2
 
 BE EMPLOYED BY THE CONTRACTOR SHALL NOT UTILIZE AN  EMPLOYMENT  CONTRACT
 CONTAINING CLAUSES WHICH REQUIRE EMPLOYEES TO STIPULATE TO BINDING ARBI-
 TRATION  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 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.
   § 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.

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Senate Bill S2298

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Sponsored By

Kevin S. Parker