Read the whole thing at Hot Air: the White House will press government contractors to hold off on issuing
layoff notices in October in anticipation of the sequestration cuts,
afraid of the political backlash that will ensue. In fact, the Obama
administration is offering to indemnify government contractors for
losses and fines for delaying those notices.
So, defense companies are required to comply with the Worker Adjustment and Retraining Notification (WARN) Act,
which requires companies to give advance warning to workers deemed
reasonably likely to lose their jobs. Obama doesn't want them giving notice, as required by WARN, 60 days before sequestration, because that's just before the election. Sooo...
If an (government) agency terminates or modifies a contract, and the contractor must
close a plant or lay off workers en masse, the company could treat
employee compensation costs for WARN Act liability, attorneys’ fees and
other litigation costs as allowable costs to be covered by the
contracting agency—so long as the contractor has not issued those 60 day (required) notices.
In other words, break the law and we (the government, financed by the taxpayers) will pay for whatever problems arise.
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