HB 26-1236

HB 26-1236, also known as Arbitration Reform, is a Colorado bill that aims to protect consumers and employees by limiting certain provisions in arbitration agreements. It stops companies from including clauses that prevent people from participating in group lawsuits or charging excessive fees for arbitration compared to court costs. The bill also ensures arbitrators are fair and unbiased and requires businesses to provide detailed records of arbitration outcomes within 90 days, facing penalties if they fail to do so. Since the status is "signed," this means the bill has been approved by both houses of the Colorado legislature and signed into law by the governor, making these protections enforceable now.

Official Summary

The act:Prohibits a provision in an arbitration agreement that requires an employee to an employer and employee contract or a consumer to a business and consumer contract to pay fees that substantially exceed the costs required to file a claim in state or federal court, except as preempted by federal law, and disallows the waiver of this prohibition;Prohibits an individual from serving as an arbitrator if the individual has a rule, policy, procedure, or demonstrated pattern of conduct that discriminates, or prevents, or has the effect of preventing, a certain party, type of party, or attorney from asserting the party's right in arbitration or bringing a claim in arbitration; andRequires a party to fully comply with requirements of a record of an award, within 120 days after the date of the award, or be liable for additional damages caused by their failure to comply.     Under current law, exemplary damages are prohibited in arbitration proceedings. The act repeals this prohibition.(Note: This summary applies to this bill as enacted.)

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