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March 11, 2010

Arbitration Restrictions for Federal Contractors : Just the Beginning?

Filed under: Employment Law — Tags: , 12:53 pm

Dramatic changes may be coming regarding the use of mandatory arbitration agreements in the workplace.

The recent Department of Defense Appropriations Act (the “Franken Amendment,”) significantly narrowed  the use of mandatory arbitration in employment agreements between defense contractors (and subcontractors) and their employees or independent contractors.

At present, the legislation applies to defense contractors, but all federal contractors could be next.  In fact, the proposed Arbitration Fairness Act would restrict mandatory arbitration for all types of employers.

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