View Full Version : White House to contractors: Hold off on layoff warnings

10-02-2012, 03:13 AM
NEW YORK (CNNMoney) -- The White House on Friday told government contractors worried about fiscal cliff spending cuts to hold off on warning employees about possible layoffs.

The government said it would cover legal costs if contractors are forced to slash their payrolls because of the looming $109 billion in automatic cuts next year and are alleged to have violated the WARN Act.

The federal WARN Act requires businesses with more than 100 employees to notify workers at least 60 days in advance of a mass layoff or plant closing. Some states require more notice.


10-02-2012, 09:43 AM

Northern Virginia and Maryland are basically DC suburbs, with massive numbers of federal contractors. Layoff notices just prior to the election would tank Obama's chances in VA and put Maryland in play. So, rather than enforce a labor rule that Democrats demanded and fought for, Obama is manipulating the law for partisan gain.