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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Mandatory arbitration is out for major defense contractors
Section 8116 of the Defense Appropriations Act signed by the
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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."



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.

