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New Prohibitions of Mandatory Arbitration for Defense Contractors
From: Connecticut Employment Law Blog
Lost in the shuffle of the COBRA subsidy extension have been new restrictions that prohibit some defense contractors from using mandatory arbitration provisions with their employees. The Washington Employment Law Update does an excellent job at recapping the relevant provisions and points out that there will be new certification requirements for such contractors in mid 2010. The key text of the new law is as follows: (a) None of the funds appropriated or otherwise made available by this Act may be expended for any Federal contract for an amount in excess of $1,000,000 that is awarded more than 60 days after the effective date of this Act, unless the contractor agrees not to: (1) enter into any agreement with any of its employees or independent contractors that requires, as a condition of...
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Defense Contractors May Be Barred From Using Pre-Dispute Arbitration Provisions With Employees
Connecticut is chock-full of defense contractors. Which is why an amendment that was slipped into the Senate defense appropriations bill should now be one that is closely followed by those contractors. This week, the Senate approved of an amendment that will prohibit

Copyright 2009 Daniel A. Schwartz

defense contractors from requiring their employees sign arbitration agreements as a condition of their employment. Specifically, the measure states: None of the funds appropriated or otherwise made available by this Act may be used for any existing or new Federal contract if the contractor or a subcontractor at any tier requires that an emplo...
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Mandatory arbitration is out for major defense contractors
Section 8116 of the Defense Appropriations Act signed by the President on December 21 requires major defense contractors and subcontractors to agree not to enter into or enforce agreements with employees or subcontractors that require arbitration of: "any claim under title VII of the Civil Rights Act of 1964 or any tort related to or arising out of sexual assault or harassment, including assault and battery, intentional infliction of emotional distress, false imprisonment, or negligent hiring, supervision, or retention." [H.R. 3326 text]
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Twas the Night Before Christmas: COBRA Subsidy Extension and Health Care Bill Special Edition
Twas the night before Christmas With a whole bunch of laws, A new COBRA was stirring, with a health bill (and flaws?) Congress sure has been busy the last few days. This Christmas Eve morning, the Senate passed a landmark health care bill.  No doubt, it will continue to be tweaked and modified as the House and Senate seek to reconcile their respective bills.  I don't think you will find anyone who believes it is perfect and without flaws. But the passage today ensures that employers are going to have some new work cut out for them in 2010 as the provisions of the bill start getting implemented.  I will recap the provisions affecting employers once it becomes a little clearer in the reconciliation process. Until then, employers can (and should) focus on the COBRA subsidy exte...
More | Connecticut Employment Law Blog
Federal Defense Contractors Cannot Require Arbitration of Discrimination Claims.
The Department of Defense Appropriations Act of 2010 (the "Act"), enacted on December 19, 2009, does more than dole out funds to the Department of Defense (DOD). Of particular note to federal contractors, the Act restricts DOD contractors with qualifying contracts from requiring their employees, as a condition of employment, to arbitrate claims brought under Title VII of the Civil Rights Act of 1964 and torts "related to or arising out of sexual assault or harassment."

More | Federal Employment Law Articles
Defense Appropriations Bill Restricts Federal Defense ContractorsÂ’ Use of Arbitration Agreements.
On December 19, 2009, President Obama signed into law the Fiscal Year 2010 Department of Defense Appropriations Act (the "Act"). Embedded in this $636 billion spending measure is a provision that prohibits federal contractors receiving Defense Department funds for contracts in excess of $1,000,000 from requiring their employees or independent contractors to arbitrate certain disputes, including claims under Title VII of the Civil Rights Act of 1964. Such federal contractors also will be required to certify that their subcontractors agree to these same restrictions.

More | Federal Employment Law Articles
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