DOD Final Rule Restricts Arbitration For Contractors

Law360, New York (December 11, 2010, 7:58 PM EST) -- The U.S. Department of Defense has finalized a rule that restricts the use of mandatory arbitration agreements for businesses with contracts exceeding $1 million.

The rule, first published in May and finalized Wednesday, implements section 8116 of the DOD Appropriations Act for Fiscal Year 2010, which prohibits the use of funds made available by the act for contracts over $1 million if the contractor restricts its employees to mandatory arbitration in employment disputes.

Contractors will not be able to mandate arbitration for claims under Title VII...
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