Employers must pay arbitration fees or face sanctions

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.

Engrossed· 2025-06-13

Who's it for

Who's it for: Everyday People

What it means for you

8/10Helps you

Good for everyday people ·

Cost shift

Plain‑English summary, cross‑checked against the official bill text.

If a company or landlord doesn’t pay required arbitration fees, the worker or consumer can quit arbitration, go to court, and get the fees back plus sanctions.

Our take

What we think, in plain words.

The bill would make employers and other businesses pay any fees needed to start or keep an arbitration. If they don’t pay on time, the employee or shopper can pull out of arbitration and take the case to court. A judge could then order the business to cover the fees, attorney costs, and even add penalties. This protects everyday people from being forced into costly arbitration without a chance to sue in court.

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The facts

What the bill actually says, no spin.

Drafting party must pay arbitration fees within thirty days.
If fees are not paid, the employee or consumer may withdraw from arbitration and go to court.
Courts can order the drafting party to pay reasonable attorneys’ fees and costs.
Sanctions may be imposed on any party that breaches the arbitration agreement.
Applies to employment and consumer arbitrations, except those in collective bargaining agreements.