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Obama administration tells contractors again: Don’t issue layoff notices

The guidance said that if plant closings or mass layoffs occur under sequestration, then “employee compensation costs for [Worker Adjustment and Retraining Notification] WARN act liability as determined by a court” would be paid for covered by the contracting federal agency.

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Senate Republicans, who accused the White House of trying to hide job losses after the first guidance, said Friday that the new OMB statement “puts politics ahead of American workers.”

“The Obama Administration is cynically trying to skirt the WARN Act to keep the American people in the dark about this looming national security and fiscal crisis,” Sens. John McCainJohn Sidney McCainComey donates maximum amount to Democratic challenger in Virginia House race Live coverage: McSally clashes with Sinema in Arizona Senate debate Is there difference between good and bad online election targeting? MORE (R-Ariz.), Lindsey GrahamLindsey Olin GrahamSaudi mystery drives wedge between Trump, GOP Suspects in journalist's disappearance linked to Saudi crown prince: report Overnight Defense: Trump worries Saudi Arabia treated as 'guilty until proven innocent' | McConnell opens door to sanctions | Joint Chiefs chair to meet Saudi counterpart | Mattis says Trump backs him '100 percent' MORE (R-S.C.) and Kelly AyotteKelly Ann AyotteElection Countdown: O'Rourke brings in massive M haul | Deal on judges lets senators return to the trail | Hurricane puts Florida candidates in the spotlight | Adelson spending big to save GOP in midterms GOP mulls having outside counsel question Kavanaugh, Ford Pallbearers, speakers announced for McCain's DC memorial service and Capitol ceremony MORE (R-N.H.) said in a statement. “The president should insist that companies act in accordance with the clearly stated law and move forward with the layoff notices.”

The fight over WARN Act notices began in June when Lockheed Martin CEO Bob Stevens said his company might send the notices to all 123,000 of its employees.

Some companies were hesitant to follow Lockheed, but several others told McCain in letters earlier this month they might send the notices, too, despite the Labor Department guidance.

But the new guidance would appear to address one of the chief concerns from the companies — that they could be liable to compensate employees who were laid off if the companies don’t issue the notices.

The GOP senators complained, however, that this tactic would push the cost of the layoffs onto taxpayers.

A Lockheed Martin spokeswoman told The Hill that the company is still reviewing the documents.


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