The Workers Adjustment and Retraining Notification Act of 1989 was waived by the president in a memo. What are your thoughts.

The Obama Administration issued a memorandum late Friday, instructing Federal contractors that they should not provide WARN Act notice to employees facing sequestration. The WARN Act is designed to protect “workers, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs.

Federal guidance provides only three exceptions to a WARN Act notification. The exceptions are: 1) a faltering company that is actively seeking capital or business and believes notification would prevent it from obtaining such capital, 2) a natural disaster and 3) unforeseeable business circumstances.

If defense contractors were to issue WARN notifications, they would need to be issued just days before the election as the sequestration cuts would occur on January 1st (and the law requires at least 60 days notice). Any notifications would create a huge political risk.

Image for post The Workers Adjustment and Retraining Notification Act of 1989 was waived by the president in a memo. What are your thoughts.
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