Administration To Pay Contractors To Violate WARN Act!!!


The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) is a United States labor law which protects employees, their families, and communities by requiring most employers with 100 or more employees to provide sixty- (60) calendar-day advance notification of plant closings and mass layoffs of employees.

In other words, this is a requirement to give workers a heads up about impending joblessness. 

The Labor Department issued guidance in July saying it would be “inappropriate” for contractors to issue notices of potential layoffs tied to sequestration cuts. But a few contractors, most notably Lockheed Martin, said they still were considering whether to issue the notices — which would be sent out just days before the November election.

But the Friday guidance from the Office of Management and Budget raised the stakes in the dispute, telling contractors that they would be compensated for legal costs if layoffs occur due to contract cancellations under sequestration — but only if the contractors follow the Labor guidance.

Sequestration is the word they’re using for the automatic defense cuts which will occur if the lame duck session of congress doesn’t act to stop this.  This was the massively stupid compromise Obama came up with in order to raise the debt ceiling.  And, it was massively stupid of congress to go along with it, but they were getting blamed by the press when they wanted some spending cuts to go along with adding more debt.  So both groups kicked the can down the road and here we are.  

The contractors are by law obliged to inform their workers.  Now the administration is saying they will cover the legal costs if the contractors violate the law.  That is to say, they’re offering our money to the contractors as an enticement to break federal law! 

Despite DOL’s guidance, some contractors have indicated they are still considering issuing WARN Act notices, and some have inquired about whether Federal contracting agencies would cover WARN Act-related costs in connection with the potential sequestration. To further minimize the potential for waste and disruption associated with the issuance of unwarranted layoff notices; this memorandum provides guidance regarding-the allowability of certain liability and litigation costs associated with WARN Act compliance. Specifically, if (1) sequestration occurs and an agency terminates or modifies a contract that necessitates that the contractor order  a plant closing or mass layoff of a type subject to WARN Act requirements, and (2) that contractor has followed a course of action consistent with DOL guidance; then any resulting employee· compensation costs for WARN Act liability as determined by a court, as well as attorneys  fees and other litigation costs (irrespective of litigation outcome), would qualify as allowable costs and be covered by the contracting agency, if otherwise reasonable and allocable.

I would say that this is clearly illegal and someone should be held responsible, but who would I be kidding?  Our DOJ isn’t going to do anything about this.  The media isn’t going to say anything.  Laws are for proles. 

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6 Responses to Administration To Pay Contractors To Violate WARN Act!!!

  1. gator69 says:

    There is no WARN act in the financial industry, or any white collar jobs that I know of. We are creating a “workers paradise’.

  2. DirkH says:

    Thomas Sowell: Obama’s rethoric against Obama’s actions. 4 parts.

  3. DirkH says:

    “ignore the law, we’ll pay your court costs” – that’s a PROMISE from the Obama administration. Two problems with that:
    1) The Obama administration might need to fulfill that promise from the afterlife
    2) It’s worth as much as the other promises of the Obama administration.

  4. philjourdan says:

    This is Obama’s Carbon tax (check out the law in Oz about not allowing anyone to blame rising prices on the new carbon tax).

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