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But the Office of Management and Budget said Friday "that it is neither necessary nor appropriate for Federal contractors to provide WARN Act notice to employees 60 days in advance of the potential sequestration because of uncertainty about whether sequestration will occur and, if it did, what effect it would have on particular contracts, among other factors."
Citing a policy letter issued by the Department of Labor in July, OMB said "giving notice in these circumstances would waste States' resources in undertaking employment assistance activities where none are needed and create unnecessary anxiety and uncertainty for workers."
In an effort to help keep contractors from issuing notices, OBM said that "liability and litigation costs associated with the WARN Act compliance" could be covered by the federal government.
Other Republicans that have also weighed in on the issue, including Senate Judiciary ranking member Chuck Grassley (Iowa) and Sen. Kelly Ayotte (N.H.). The duo today wrote to OMB Acting Director Jeffrey Zients seeking additional information.
"What the administration has done raises serious questions," Grassley said in a joint release today. "In our letter of inquiry, we're asking what authority the administration is using to say it is okay to disregard the law and commit to pay for monetary judgments and other expenses resulting from lawsuits. If workers aren't given the notice they're due, the costs could amount to billions of dollars for taxpayers. The public deserves answers and accountability without any delay."
"The administration's new guidance tells employers to willfully ignore the law and stay silent about looming layoffs until after the election - and promises them a taxpayer funded bailout for their legal expenses if they do so," Ayotte said. "The administration must explain its legal basis for this interpretation of the WARN Act that leaves taxpayers on the hook, American workers in the dark, and our national security in jeopardy."
Grassley and Ayotte's letter comes after the White House released a report on how it would implement the sequester. Republicans said it did not provide the level of detail sought. Congress recently passed a law seeking the report.
The sequester - part of last August's deal to raise the debt ceiling - was triggered by the failure of the super committee to reach agreement on a $1.2 trillion deficit-reduction plan last fall. The threat of such harsh cuts was intended to provide an incentive for House and Senate lawmakers to come up with their own comprehensive plan.
But that didn't happen, and Republicans have been warning that defense contractors may have to lay off workers as a result of the sequester. Democrats have said that they would be willing to revisit the sequester issue, but have stressed that any deficit reduction package that would replace it would need to include tax increases on upper income earners.