DoD Implements Franken Amendment For Non-Commercial Contracts
Client Alert | 1 min read | 03.04.10
On February 17, DOD issued a class deviation implementing the prohibitions of the "Franken Amendment" to the 2010 Defense Appropriations Act restricting the use of arbitration clauses in employment contracts and will consider comments received within two weeks of publication date in the formulation of an interim rule incorporating the clause into the DFARS (http://www.acq.osd.mil/dpap/policy/policyvault/USA000476-10-DPAP.pdf). Under the new DFARS clause, 252.222-7999, which is only applicable to new non-commercial contracts or orders in excess of $1 million that utilize funds appropriated by the FY10 Act, contractors agree (1) not to enter into any agreement with any of its employees that require, as a condition of employment, that the employee agree to resolve through arbitration certain types of employment disputes; (2) not to enforce such clauses in existing contracts; and (3) for contracts awarded after June 17, 2010, to require covered subcontractors to comply with these requirements.
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On August 19, 2025, the U.S. Senate Committee on Finance (“Senate Finance Committee”) sent Paul Atkins, Chairman, U.S. Securities and Exchange Commission (“SEC”) a letter calling on the SEC to investigate White River Energy Corp (“White River”). In the letter, the Senate Finance Committee confirmed a criminal investigation into White River related to the sale of so-called “tribal tax credits” that according to both Congress and the IRS, do not exist. The letter further states that White River allegedly earned millions of dollars selling these credits and has not been forthcoming with investors regarding the existence of the criminal investigation. According to the Senate Finance Committee, White River has failed to file financial disclosure documents with the SEC since March 15, 2024, missing six consecutive reporting periods. The letter instructs White River to disclose the existence of the DOJ criminal tax investigation, and calls on the SEC to take action if White River fails to do so.
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