Defense Appropriations Bill: Impact On Contractors

Law360, New York (January 15, 2010, 9:09 AM EST) -- On Dec. 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 million 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....
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