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For the past few weeks, several defense contractors made it clear they would have to send out layoff notices to thousands of workers due to automatic budget cuts set to take effect in January. The cuts are triggered by the debt ceiling "deal" hatched last year. The layoff notices are required under federal law.
Understandably, the Obama Administration was panicked by this. The notices would hit in the last month of his reelection campaign and have a huge impact in the critical swing state of Virginia, home to hoards of defense contractors. What to do? Simple. Ignore the law.
Yesterday, Lockheed Martin, a massive contractor, announced it had reached a "deal" with the White House and would not send out the legally required layoff notices.
The Obama Administration had "interpreted" the law and found it would be "inappropriate" to send out the layoff notices. More amazingly, the White House promised to pay any fines or penalties that might be leveled against the company for violating federal law. Read that again.
Yes, the White House just told companies to violate federal law and that, if they get in trouble for it, the government, i.e. taxpayers, will cover their fines.
Penalties
An employer who violates the WARN provisions by ordering a plant closing or mass layoff without providing appropriate notice is liable to each aggrieved employee for an amount including back pay and benefits for the period of violation, up to 60 days. The employer's liability may be reduced by such items as wages paid by the employer to the employee during the period of the violation and voluntary and unconditional payments made by the employer to the employee.
An employer who fails to provide notice as required to a unit of local government is subject to a civil penalty not to exceed $500 for each day of violation.
This penalty maybe avoided if the employer satisfies the liability to each aggrieved employee within 3 weeks after the closing or layoff is ordered by the employer.
WOW. Did you actually think your excuse out, before typing it?
A layoff is just that. Typically due to lack of funds for the company. SO.........With the knowledge of budget cuts coming, the company has planned to conduct LAYOFFS at a certain time, all documented in their board meetings. Now, since 0abam and ilk have found this out, they, just like Libya and Fast and Furious, want to postpone it until after the election.
NICE!! Just another law 0bama thinks he is above.
Originally posted by DJW001
The law would only apply if the company were to lay people off. The automatic cuts in the Federal budget would not necessarily force Lockheed to close; they have civilian contracts as well. The Administration simply persuaded the company to post-pone a final decision until after the election. Perfectly legal, and very smooth.
Originally posted by DJW001
The law would only apply if the company were to lay people off. The automatic cuts in the Federal budget would not necessarily force Lockheed to close; they have civilian contracts as well. The Administration simply persuaded the company to post-pone a final decision until after the election. Perfectly legal, and very smooth.
In July the Labor Department issued legal guidance making clear that federal contractors are not required to provide layoff notices 60 days in advance of the potential Jan. 2 sequestration order, and that doing so would be inconsistent with the purpose of the WARN Act.
After “careful review” Lockheed announced today that it will abide by the administration’s guidance.
The additional guidance further ensures that, if contract actions due to sequestration were to occur, our employees would be provided the protection of the WARN Act and that the costs of this protection would be allowable and recoverable.
The decision was discussed and more then likely finalized during the Board meeting to discuss the up coming Quarters and Budgets.
Why else would the 0bama admin push to have them delay?
Why has it been brought up that is is more than likely a violation of the WARN act?
Couldn't be that 0bama does not want this on his hands, could it?
It is the current Admin trying to pressure Companies to do something, so that the admin is seen in a favorable light.
Gotta love intrusive Govt.
Originally posted by DJW001
Were you present at these board meetings? I'd love to see your transcript.
They are publicly traded and a Govt contractor. The info is made public.