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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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In the consolidated budget bill, H.R. 1158, recently signed by President Trump on December 20, 2019 (P.L. 116-93), Section 8092 has renewed the ban on certain Department of Defense (DOD) contractors and subcontractors from requiring employees to arbitrate certain claims against the contractor. First enacted as part of the 2010 budget bill, this provision bars the DOD from contracting with entities that require employees to arbitrate any employment claims that may be brought under <a href="https://www.eeoc.gov/laws/statutes/titlevii.cfm" target="_self" rel="noopener">Title VII</a> of the Civil Rights Act, as well as any tort claims related to sexual harassment or assault. The prohibition applies to any DOD contracts or subcontracts using appropriated funds of at least $1 million. The DOD has specifically included the prohibition as part of its acquisition regulations found at <a href="https://www.govinfo.gov/content/pkg/CFR-2018-title48-vol3/xml/CFR-2018-title48-vol3-part252.xml" target="_self" rel="noopener">DFARS 252.222-7006</a>.

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For any of our clients in the defense industry who require their employees to sign pre-dispute arbitration agreements as a condition of employment, they should examine whether their current arbitration agreements comply with Section 8092 and the DFARS provision. If existing agreements contain broad-sweeping mandatory arbitration provisions, those agreements should be modified to create “carve-outs” for any Title VII claims or claims related to sexual harassment or sexual assault.

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Matthew R. Kissling 216.566.5586 <a href="mailto:Matthew.Kissling@ThompsonHine.com">Matthew.Kissling@ThompsonHine.com</a>

Tom Mason 202.263.4168 <a href="mailto:Thomas.Mason@ThompsonHine.com">Thomas.Mason@ThompsonHine.com</a>

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2022/04/Government_Contracts_Update_-_Renewed_Restrictions_on_the_Use_of_Mandatory_Employment_Arbitration_Agreements.pdf

Renewed Restrictions on the Use of Mandatory Employment Arbitration Agreements

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