No WARNing

Discussion in 'Economy' started by longknife, Sep 30, 2012.

  1. longknife

    longknife Diamond Member

    Sep 21, 2012
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    by Texan99 @ Grim's Hall: No WARNing

    The WARN Act is supposed to protect workers from unexpected layoffs, by requiring 60 days' notice of planned facilities closings. A couple of months back, someone in the Obama administration noticed that the timing of the impending sequestration is such that the WARN Act would require notices to go out just before the election to many, many voters who happen to work for defense contractors -- can't have that! So the Department of Labor issued advisories that under the, er. special circumstances, the WARN Act didn't apply, because, election.

    The defense contractors thought about it for a while and decided that it might not be safe to rely on the Labor directive, since workers would have a right to sue under the plain terms of the Act. So the OMB has stepped up: now they're promising to indemnify the employers against not only the legal fees they will incur but also the amount of any judgment rendered against them. Using taxpayer money. Is the purpose to delay bad news until after the election? No, the OMB explains that issuance of an unwelcome WARN notice would

    waste States' resources in undertaking employment assistance activities where none are needed and creaty unnecessary anxiety and uncertainty for workers.

    Including PTSD, no doubt. It remains to be seen whether the employers will fall for it. There are public policy restrictions on indemnifying people against the consequences of deliberate violations of law, and it's a big gamble, anyway, on the perserverence of these hacks in their present positions of authority to dispense goodies from the public funds for their personal benefit.

    I'm most interested to see if the White House will figure out a way to impose penalties on employers who decide to play it safe and send the notices anyway. Penalties, that is, in addition the withhold of their bribe.


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