New Federal Statute Bars The Majority Of Defense Contractors And Subcontractors From Compelling Workers To Arbitrate Sexual Assault, Sexual Harassment, Or Employment Discrimination Claims

The Department of Defense Appropriations Act for Fiscal Year 2010 (the “DOD Act”) was signed by the White House on December 19 of last year and became effective on February 17, 2010.

The DOD Act, section 8116, bars any company which is a party to any agreement in excess of $1,000,000 with the U.S. Department of Defense, and any company which subcontracts pursuant to such an agreement, from entering into an employment contract with any worker at the company which obligates the worker, as a condition of work, to submit to arbitration any claim under Title VII of the 1964 Civil Rights Act or any tort relating to or arising from sexual assault, sexual harassment, or employment discrimination.