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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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Client Alert | 4 min read | 08.21.25

FLSA Overtime Reporting and Withholding

The One Big Beautiful Bill Act (the Act), signed on July 4, 2025, allows a deduction from an individual’s personal tax return on Form 1040 for “qualified overtime compensation” as defined in new Code § 225. The amount that can be deducted from the employee’s return is capped at $12,500 with the maximum then adjusted down if the employee’s AGI exceeds certain limits. This deduction is permitted in 2025....