Arbitration

Policy Guidance

1. No school rule, policy, or agreement required as a condition of enrollment in or completion of a course or curricula, can undermine or prevent a student from exercising their private right of action under New York State Education Law § 5003(8).
2. No school rule, policy, or agreement between a licensed private career school and a student shall limit, deter, prevent, or prohibit BPSS from taking disciplinary action against a school pursuant to New York State Education Law § 5003.
3. Arbitration clauses are not permitted in course catalogs and student enrollment agreements, to include deferred tuition and/or income sharing agreements. Since the inclusion of such clauses in an enrollment agreement may diminish or make less obvious to students, their right of private action guaranteed by Education Law § 5003(8), and may diminish the authority of BPSS to take disciplinary action against schools to resolve student complaints, arbitration clauses do not meet the standard for reasonableness, which is required by 8 NYCRR §126.7(b)(12) of the Commissioner’s Regulations.

Implications for BPSS Review

• BPSS will not approve any enrollment agreement or course catalog that contains language related to arbitration.
• BPSS Schools with currently approved enrollment agreements or course catalogs containing language related to arbitration will be required to remove such language at the point of their next review or inspection, routine request for changes, curriculum renewal period, or school renewal period, whichever event occurs first. 

Questions regarding this policy guideline should be directed, by email, to the school’s Field Associate.

Authority

Education Law 5002(1)(b)(5); Education Law § 5003(8); 8 NYCRR §126.7(b)(12); 8 NYCRR §126.1(a).