Defense implements sexual assault rule
Contractors cannot use mandatory arbitration agreements to settle cases; provision includes waiver for national security.
Companies that restrict victims of alleged sexual assault from pursuing legal action will not be eligible for future Defense Department contracts.
On Wednesday, the department published an interim rule in the Federal Register that implements a provision in the fiscal 2010 Defense Appropriations Act prohibiting Pentagon contractors from using mandatory arbitration agreements to settle many criminal complaints. The rule is effective immediately.
The provision, introduced by Sen. Al Franken, D-Minn., stemmed from the experience of former KBR Inc. employee Jamie Leigh Jones, who was allegedly gang raped by co-workers while stationed in Iraq and then physically prevented from receiving medical treatment or reporting the crime.
Upon returning home, Jones learned that her contract with the company banned her from taking the case to court. Instead, it required her to enter into arbitration with the alleged rapists.
The new rule would prevent Defense from entering into new contracts -- including task and delivery orders and contract modifications -- with companies that use arbitration to settle claims of sexual assault or harassment, assault and battery, intentional infliction of emotional distress, false imprisonment, or negligent hiring, supervision or retention.
The law, however, does include a number of exceptions that were outlined in Wednesday's notice. The provision does not apply to contracts valued at less than $1 million or for the acquisition of commercial items. It also includes a waiver for national security concerns.
The Defense secretary or deputy secretary would have to personally determine that the "waiver is necessary to avoid harm to national security interests of the United States, and that the term of the contract or subcontract is not longer than necessary to avoid such harm."
Defense is accepting feedback on the rule through July 19. Comments can be submitted through Regulations.gov or by e-mail at dfars.osd.mil with DFARS Case 2010-D004 in the subject line.