The U.S. Supreme Court has in recent years favored arbitration as a dispute resolution method, as demonstrated by its ruling last term in 14 Penn Plaza LLC v. Pyett, 129 SCt 1456 (2009), upholding the enforceability of a mandatory arbitration provision in a collective bargaining agreement that waives a union member’s right to bring statutory discrimination claims in a judicial forum. However, recent legislation enacted by the federal government serves as a reminder that members of Congress are not quite so enamored with the use of binding arbitration, particularly in certain types of employment disputes.
The 2010 Department of Defense Appropriations Act, Pub. L. No. 111-118 (DOD Act), signed by President Barack Obama on Dec. 19, 2009, includes provisions that restrict military contractors’ use of mandatory arbitration agreements with its employees. This month’s column discusses these limitations imposed by the DOD Act, as well as other recent changes in federal employment law, including the DOD Act’s extension and expansion of the federal government’s COBRA subsidy program and changes to the Family and Medical Leave Act (FMLA) expanding the scope of leave available to family members of those in the military.
Arbitration Agreements
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