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September 29, 2012

"Don't You Dare Obey This Law"

Because if you do, we'll make it very unpleasant for you.

Thus speaks the branch of government whose job it is to enforce the law:

The Obama administration issued new guidance intended for defense contractors Friday afternoon, reiterating the administration’s position that the companies should not be issuing layoff notices over sequestration.

The Labor Department issued guidance in July saying it would be “inappropriate” for contractors to issue notices of potential layoffs tied to sequestration cuts. But a few contractors, most notably Lockheed Martin, said they still were considering whether to issue the notices — which would be sent out just days before the November election.

But the Friday guidance from the Office of Management and Budget raised the stakes in the dispute, telling contractors that they would be compensated for legal costs if layoffs occur due to contract cancellations under sequestration — but only if the contractors follow the Labor guidance.

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.

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 McCain (R-Ariz.), Lindsey Graham (R-S.C.) and Kelly Ayotte (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.”

Does anyone sense a recurring theme here?

...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.

The systemic transfer of risk from the private to the public sector is something that should profoundly disturb both Democrats and Republicans. When this is coupled with a government that uses veiled threats to pressure American firms to flout the law, that concern should become outrage.

This is a big deal. So why isn't it on the front page of every major newspaper in America?

Posted by Cassandra at September 29, 2012 01:00 PM

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"Don't You Dare Obey This Law"

In keeping with the Obama (New Leftist) Manifesto

you don't own that, you didn't build that,
you didn't learn that, you didn't earn that,
you didn't create that, you didn't win that,

you can't consider that, you can't read that,
you can't think that, you can't say that,
you can't sing that, you can't play that,

you can't suggest that, you can't ingest that,
you can't cling to that, you can't display that,
you can't join that, you can't chance that,

you can't answer that, you can't question that,
you can't dispute that, you can't oppose that,
you can't probe that, you can't prove that,

you can embrace that or you can swallow that.

Posted by: George Pal at September 29, 2012 01:17 PM

I agree with you wholeheartedly on this one, Cass. This is ought to be highly alarming.

Posted by: Grim at September 29, 2012 01:25 PM

"So why isn't it on the front page of every major newspaper in America?"

Is that a trick question?

Posted by: Texan99 at September 29, 2012 03:49 PM

I think we all know the answer. Those people should be ashamed of themselves.

First they came for....

...and when they came for me, there was no one left to help me....

Posted by: Miss Ladybug at September 30, 2012 12:57 AM

Hard to believe this is anything but a political move on the part of the Obama administration. I'm not familiar with the federal laws, but I know the state I live in requires employers to notify the state 30 days prior to any work force reduction over 75 employees.

Posted by: Frodo at September 30, 2012 03:05 PM