Franken amendment threatens to take funds from contractors
2010 Defense Appropriations Act provision witholds money from contractors using employee arbitration clauses
By Matthew Weigelt • Feb 22, 2010
Contractors, particularly large defense companies, are ill-prepared for a provision of the 2010 Defense Appropriations Act that stops funds from going to companies that require employees sign arbitration clauses.
Known as the Franken amendment for its sponsor Sen. Al Franken (D-Minn.), the provision gets the federal government more deeply involved in the employer-employee relationship at defense contractors and other companies.
The amendment, which went into effect Feb. 17, prohibits a contractor or subcontractor from receiving any government money in fiscal 2010 if they require employees or independent contractors to sign arbitration clauses. The amendment also bans defense companies from enforcing any existing agreements.
Arbitration is a process by which two parties, such as an employer and an employee, go to a third party to resolve a conflict. It’s a step away from a lawsuit. (Read the rest of the story here…)




