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Amends 41 U.S.C. 4712 to replace and expand protections against reprisal (striking and inserting new paragraph (1)), replace usages of 'employee' with a broader defined term 'protected individual', add enforcement and disciplinary authority regarding executive branch officials, prohibit waivers (including predispute arbitration) of rights under the section, redesignate subsections, and add a new definition of 'protected individual' that explicitly includes contractors, grantees, states, District of Columbia, tribal governments, specified U.S. territories, elements of the intelligence community, employees and certain personal services contractors.
Amends 10 U.S.C. 4701 to expand the class of protected persons from 'employee' to a newly defined 'protected individual', revise protected disclosure categories to explicitly include Department of Defense and NASA contracts and grants and substantial dangers to public health or safety, prohibit executive branch officials from requesting contractor reprisals and authorize proposed disciplinary action against such officials, clarify that rights and remedies under the section cannot be waived (including by predispute arbitration agreements), redesignate subsections following the removal of a subsection, and add a detailed statutory definition of 'protected individual' including contractors, grantees, certain government entities, tribal organizations, territories, and elements of the intelligence community within DoD.
Expands legal protections for people who report wrongdoing or refuse illegal orders while working on federal contracts. It prevents retaliation (like firing or demotion), bars executive-branch officials from asking contractors to punish whistleblowers, and makes those protections non-waivable — including by pre-dispute arbitration agreements. One part targets workers on Department of Defense and NASA contracts and creates explicit disciplinary authority against executive-branch officials who request reprisals; the other part extends parallel protections to persons on or connected with other federal contracts. The bill also defines who counts as a protected individual and clarifies covered disclosures and refusals.
Amend 10 U.S.C. 4701(a)(1): replace existing text in the matter preceding subparagraph (A) by striking "An employee" and inserting "services contractor" (text change to heading/subject matter).
Amend 10 U.S.C. 4701(a)(1): strike former subparagraphs (A), (B), and (C) and insert new subparagraphs describing protected activities: (A) refusing to obey an order that would require the protected individual to violate a law, rule, or regulation related to any contract, subcontract, grant, or subgrant; (B) disclosing to a person or body described in paragraph (2) information the protected individual reasonably believes is evidence of: (i) gross mismanagement, gross waste of funds, abuse of authority, or violation of law/rule/regulation related to any Department of Defense contract/subcontract or grant/subgrant; (ii) the same categories for National Aeronautics and Space Administration contracts or grants; (iii) a substantial and specific danger to public health or safety.
Amend 10 U.S.C. 4701(a)(3): in subparagraph (A) change terminology from "an employee" to "a protected individual"; replace subparagraph (B) with a new sentence stating it is not within the authority of an executive branch official to request that a contractor, subcontractor, grantee, or subgrantee engage in a reprisal prohibited by paragraph (1). This limits executive-branch authority to seek reprisals against protected activities.
Amend 10 U.S.C. 4701(c)(1): add subparagraph (E) authorizing the proposing of appropriate disciplinary action against any executive branch official for any request made of a contractor, subcontractor, grantee, or subgrantee that subjected the complainant to a reprisal prohibited by subsection (a).
Amend 10 U.S.C. 4701(c): replace paragraph (7) with a new paragraph (7) clarifying waiver restrictions: (A) the rights, forum, and remedies in this section may not be waived by any public or private agreement, policy, form, or condition of employment, including any predispute arbitration agreement; (B) no provision of a predispute arbitration agreement is valid or enforceable if it requires arbitration of a dispute arising under this section. This prevents pre-dispute arbitration clauses or similar agreements from removing these protections.
Who is affected and how:
Contractors and contractor employees: Directly benefit from broader and clearer protections against retaliation for reporting serious wrongdoing or refusing illegal orders. Contracts and personnel policies will need updates to reflect that arbitration clauses and other pre-dispute waivers cannot strip these statutory rights.
Subcontractors, applicants, and related contractor personnel: Many of these groups are included in the statutory definition of "protected individuals," so they gain clearer protection when raising covered concerns or refusing unlawful directives.
Department of Defense, NASA, and other federal agencies: Must avoid seeking or directing reprisals against contractor personnel; executive-branch officials face possible discipline for requesting reprisals. Agencies will need to revise procurement guidance, oversight procedures, and training for officials who interact with contractors.
Contractors’ legal and compliance teams: Will likely revise standard agreements, remove or adjust arbitration/waiver language, and enhance internal reporting and investigation processes to reduce legal risk and encourage internal resolution of issues.
Project delivery and oversight: May see increased reporting of safety, waste, or mismanagement concerns, which could improve risk detection and public safety but also increase administrative and legal workloads; contractors and agencies may face more disputes or claims asserting the protections.
Potential tradeoffs and tensions: Contractors and some agencies may object to limits on arbitration and expanded exposure to claims, arguing increased compliance costs and litigation risk. Supporters will argue the changes strengthen accountability and protect public safety by encouraging reporting without fear of retaliation.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced March 5, 2025 by Gary C. Peters · Last progress March 5, 2025
Placed on Senate Legislative Calendar under General Orders. Calendar No. 289.
Committee on Homeland Security and Governmental Affairs. Reported by Senator Paul with an amendment in the nature of a substitute. Without written report.
Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.