Budget Cuts Exempt From WARN Act, But Skeptics Remain

Law360, New York (July 31, 2012, 10:45 PM EDT) -- The U.S. Department of Labor announced Monday that the WARN Act doesn’t require defense contractors to issue layoff notices based on the possibility of budget sequestration, but attorneys said employers should still consider giving provisional notice to shield themselves from employment lawsuits.

Because of uncertainty over whether sequestration can be avoided and how it would be implemented, contractors have no obligation under the Worker Adjustment and Retraining Notification Act to send layoff notices to workers 60 days before the January start date of the sequester, the...
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