Vigilant Blog

Employers that receive a federal Department of Defense contract or subcontract worth more than $1 million will be prohibited from requiring arbitration of certain employment claims, under the 2010 Defense Appropriations Act (P.L. 111-118, Sec. 8116, signed Dec. 19, 2009). The prohibitions apply to prime contracts awarded more than 60 days after the effective date of the law (or for subcontracts, more than 180 days). Employment claims that cannot be arbitrated include those under Title VII of the Civil Rights Act, or claims related to sexual assault or harassment (such as assault and battery, intentional infliction of emotional distress, false imprisonment, or negligent hiring, supervision, or retention). For covered prime contractors, the restrictions apply to all their employees and independent contractors, but for covered subcontractors, the restrictions apply only to their employees and independent contractors working on the federal subcontract.