Update on the Inspiration for the Franken Amendment

Posted by marykeating on March 27, 2010 under Sex-based discrimination, mandatory arbitration | Be the First to Comment

Jamie Leigh Jones filed a federal lawsuit for damages, charging that while stationed in Iraq, her co-workers at Kellogg Brown and Root, then owned by Halliburton, drugged and raped her.  Jones’ employer’s insistence that all of her claims must be arbitrated led to the successful passage of the Franken Amendment, reported here.

KBR’s argument focused on Jones’ employment agreement, which called for arbitration of employment disputes.  After two years of litigation, Jones convinced the Fifth Circuit that some of her claims need not be arbitrated.  Those claims involved the civil counts arising out of crimes; the court held that Jones’ bedroom, where she was raped, was not part of her “workplace, even though it was provided by her employer.

KBR asked the Supreme Court to intervene.  Courts frequently give a great deal of deference to arbitration clauses, regardless of the disparity in power between the contracting parties.  Employees may be required to waive their rights to a jury and appeal, and submit their claims to a single or trio of arbitrators rather than experienced judges.  Arbitration is popular with employers for those reasons.  But then the Franken Amendment passed.  Now both sides have consented to have the case withdrawn from the Supreme Court’s docket.

Jones’ case is set for May.
Vail said he believes the case was withdrawn because of the so-called Franken Amendment. Following publicity about Jones’ case, Congress passed a defense appropriation last year with a provision advocated by Sen. Al Franken, D-Minn. The measure prohibits any contractor receiving federal defense funds from enforcing a contract that mandates use of arbitration to resolve civil rights, harassment and other types of disputes.

Update on the Franken Amendment

Posted by marykeating on December 19, 2009 under Government contractors, Pending legislation, sexual harassment | Be the First to Comment

The Franken Amendment has passed the House and is expected to become law.  Under the amendment to next year’s appropriations bill, contractors doing more than $1,000,000 of business with the federal government must agree not to require arbitration, rather than court, claims of discrimination, sexual assault, and other employment claims.  Six months after the effective date of the law, the contractors are responsible for ensuring that their own subcontractors with jobs of more than a million dollars also abide by the law.

The amendment forbids mandatory arbitration on the following types of claims:

• any claim under title VII of the Civil Rights Act of 1964, and
• any tort related to or arising out of sexual assault or harassment, including assault and battery, intentional infliction of emotional distress, false imprisonment, or negligent hiring, supervision, or retention.

The law arose out of a horrendous situation involving a woman who was raped and terrorized overseas while working for an American company.  The perpetrators worked for an American company, and our government.  Her employment contract required her to arbitrate her claims, and limited her remedies.  Senator Franken’s  amendment forbids companies from imposing this waiver of rights on people working as employees or independent contractors on major goverment contracts.