Butler Williams & Skilling Blog

On October 6^th, the United States Senate overwhelmingly passed the “Franken Amendment” to a bill dealing with funding of American military contractors.  According to a recent article from a minnpost.com.  the amendment, named after Minnesota's junior Senator, serves to prohibit military contractors from requiring forced arbitration of sexual assault and discrimination claims.  The need for the amendment was made evident by the case of former Halliburton contractor, Jamie Leigh Jones.  While working for Halliburton in Iraq, Ms. Jones claims to have suffered an unspeakable assault by several male coworkers.  Over the course of a single day, she contends she was drugged, raped, and then locked in a shipping container.  Ms. Jones sought to hold her alleged attackers and Halliburton civilly liable, but due an arbitration provision in her contract, Halliburton was intially able to prevent her case from reaching court.  After several years of litigation, only very recently did the Federal Courts side with Ms. Jones and allow her case to proceed within the court system.  The amendment will serve to prevent defense contractors from even attempting to compel arbitration of sexual assault and discrimination cases because it cuts off funding to any contractor who continues to employ the provisions. 

Arbitration provisions have become more and more popular in recent years.  The rational behind arbitration is that it makes the litigation process more streamlined and efficient.  To a certain extent, arbitration has some appeal provided that the parties knowingly enter into the agreement and the process for adjudication is a fair one.  Unfortunately, in the employment context, the provisions are often signed under unfair circumstances and tend to make it a more difficult road for a complaining employee.