; or (4) an applicable State law. (c) Exceptions (1) Employees exempt from overtime requirements The document provided under subsection (a) to individuals who are exempt under section 13 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 213 ) from the overtime compensation requirements under section 7 of such Act ( 29 U.S.C. 207 ) shall not be required to include a record of the hours worked if the contractor or subcontractor informs the individual of the status of such individual as exempt from such requirements. (2) Substantially similar state laws The requirements under this section shall be deemed to be satisfied if the contractor or subcontractor complies with State or local requirements that the Secretary of Labor has determined are substantially similar to the requirements under this section. (d) Independent contractors If the contractor or subcontractor is treating an individual performing work under a covered contract or subcontract as an independent contractor, and not as an employee, the contractor or subcontractor shall provide the individual a document informing the individual of their status as an independent contractor. 9. Complaint and dispute transparency (a) In general (1) Contracts The head of an executive agency may not enter into a contract for the procurement of property or services valued in excess of $500,000 unless the contractor agrees that any decision to arbitrate the claim of an employee or independent contractor performing work under the contract that arises under title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq.) or any tort related to or arising out of sexual assault or sexual harassment may only be made with the voluntary consent of the employee or independent contractor after the dispute arises. (2) Subcontracts The head of an executive agency shall require that a contractor covered under paragraph (1) incorporate the requirement under such subsection into each subcontract for the procurement of property or services valued in excess of $500,000 at any tier