On December 19, 2009, President Obama signed into law the Fiscal
Year 2010 Department of Defense Appropriations Act (the
"Act").1 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.
Background
The arbitration provision that ultimately was included in the
Act was a modified version of an amendment submitted by Senator Al
Franken (D-Minn.) during Senate consideration of Defense
Appropriations legislation....
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