On July 31, 2014, President Barack Obama signed into law Executive Order 13673, titled "Fair Pay and Safe Workplaces," which imposed changes to labor laws in the United States. In an attempt to "increase efficiency and cost savings" in the work performed by government contractors, the President transformed the way these federal contractors are regulated. Specifically, the Executive Order prohibits companies with federal contracts greater than $1 million from including mandatory pre-dispute arbitration agreements in employee contracts for claims arising under Title VII of the Civil Rights Act of 1964 ("Title VII") or any tort related to sexual assault or harassment. With few exceptions to the requirement, the President believes this will help improve contractors' compliance with labor laws.
Andrew C. Fillmore, Thanks, Obama! "Fair Pay and Safe Workplaces" Come at the Cost of Mandatory Pre-Dispute Employment Arbitration, 7 Y.B. Arb. & Mediation 237 (2015).