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Franken Amendment Would Forbid Unfair Forced Arbitration by Government Contractors

October 20, 2009 - Posted by Adam Lange

Civil rights groups are supporting an amendment to the Defense Appropriations Act for 2010 by Sen. Al Franken, D. Minn., which would deny taxpayer funding to defense contractors who force arbitration upon their employees in cases of sexual abuse and harassment and other egregious forms of unlawful job discrimination.

Forced arbitration clauses require a consumer or employee to agree to settle any disputes in arbitration before a private third party hired to review and settle disputes. They also forbid an individual from suing, participating in class action lawsuits, or appealing the arbiter's decision.  These clauses often surprise consumers and employees who are unaware of forced arbitration policies in the fine print of many types of contracts.

Franken's amendment comes as a response to the case of Jamie Leigh Jones, who was viciously assaulted and raped by co-workers while working for Halliburton/Kellogg Brown & Root (KBR) in Iraq.  Under the forced arbitration clause of her employment agreement, Jones (whose case is still in court) may be prevented from suing Halliburton and instead forced to go through secret, binding arbitration. 

In a letter to Sen. Daniel Inouye, D. Hawaii, and Rep. John Murtha, D. Pa., signed by 24 civil rights groups, the Leadership Conference on Civil Rights said that the amendment must be passed in its current form to cover all Title VII employment discrimination claims.

"Unless Title VII claims are included, other forms of discrimination – not connected to sexual violence but nevertheless egregious and intolerable – would continue to be swept under the rug of forced arbitration," the letter states.

Categories: Workers' Rights

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