Ford & Harrison LLP
1/5/2010
Wade Ballard, L. Close
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."
The so-called "Franken Amendment," after its co-sponsor and driving force, Senator Al Franken (D-Minn.), prevents any money appropriated in the Act from being paid to a federal contractor with a DOD contract worth more than $1,000,000 and awarded more than 60 days after the Act's effective date, unless that contractor agrees not to: (1) enter into agreements as a condition of employment with its employees or independent contractors requiring arbitration of Title VII claims and any sexual assault or harassment-related tort; or (2) enforce any existing agreement with an employee or independent contractor requiring arbitration of Title VII claims and any sexual assault or harassment-related torts. The Act specifically lists sexual assault and harassment-related torts to include assault and battery, intentional infliction of emotional distress, false imprisonment, and negligent hiring, supervision, or retention.
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