Sweeping Prohibition on Arbitration of Employment Disputes in 2010 Defense Appropriations
Client Alert | less than 1 min read | 12.28.09
Entities receiving federal contracts or subcontracts in excess of $1 million using funds from the 2010 Defense Appropriations Act (H.R. 3326), signed into law on December 22, 2009, will be prohibited from executing or enforcing mandatory arbitration clauses in agreements with employees or independent contractors for claims under Title VII of the Civil Rights Act of 1964 or for certain torts related to sexual assault or harassment. While limited national security waivers are contemplated, this sweeping prohibition is a significant development for defense contractors and other entities receiving contracts or subcontracts using funds from the 2010 Defense Appropriations Act.
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Client Alert | 3 min read | 11.21.25
On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future.
Client Alert | 3 min read | 11.20.25
Client Alert | 3 min read | 11.20.25
Client Alert | 6 min read | 11.19.25
