EXECUTIVE ORDER EXCLUDES FROM FEDERAL CONTRACTING ELIGIBILITY EMPLOYERS THAT IMPOSE PRE-DISPUTE ARBITRATION OF CERTAIN CLAIMS

摘要

In an Executive Order entitled "Fair Pay and Safe Workplaces" (the "EO") (bit.ly/1sgncJM), issued on July 31, 2014, the Obama Administration aims, among other things, to restrict the use of pre-dispute arbitration agreements in employment contracts, by making users of such clauses ineligible for federal contracts. Contractors and subcontractors wishing to submit proposals or bids on federal contracts and subcontracts exceeding $1 million will no longer be able to require employees or independent contractors to enter pre-dispute arbitration agreements requiring them to arbitrate claims under Title Ⅶ of the Civil Rights Act (which prohibits discrimination on the basis of race, color, sex, national origin, and religion; 1.usa.gov/1rXyGzX), or tort claims related to or arising out of sexual assault or sexual harassment. Such claims may be subject to arbitration by voluntary consent only after they arise and not at the outset of employment.