With the enactment of the Franken Amendment (§8116) to the recently adopted Defense Appropriations Act for FY 2010, Congress and the Obama administration have begun an assault on employers’ use of mandatory arbitration as an alternative to court trials for resolving workplace disputes and claims.
This amendment prohibits companies from being awarded federal defense contracts worth more than $1 million if they require arbitration to resolve certain workplace claims.
The Department of Defense has quoted the amendment’s specific language in recent contract requirements. Prospective contractors must agree not to include or enforce any existing provision for mandatory arbitration for the following matters:
[A]ny 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 i...(register to read more)
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