The Obama administration has told defense contractors to ignore federal law, and that if the contractors face legal action for doing so the federal government will cover the contractor’s legal expenses. This action taken by the Obama administration comes because it does not want hundreds of thousands layoff warning letters hitting potential voters mailboxes days before the November election.
With sequestration threatening massive cuts in defense spending, defense contractors are looking at laying off up to 1/2 of their workers. By federal law companies facing the possibility of laying off employees are required to give 60 days’ advance notice to employees in writing.
Sequestration is scheduled to take place Jan 2, 2013 if there is no movement on deficit reduction. This would have the warning letters hitting the affected people’s mailboxes just days before the national election.
With Virginia being a crucial swing state in this year’s election, and home to the most defense contractors in the United States outside of California. The Obama administration does not want these letters going out and has told the contractors they do not have to follow the law. They have also told the contractors that if layoffs have to be made without the 60 day notice, and the contractor face legal action from laid off employees for violating federal law, the federal government will pay for all their legal costs.
Lockheed Martin has said they are considering not sending out the Warn act letters. It was scheduled to send out more than 123,000 letters. Potential law suits could reach hundreds of millions of dollars all of which would be paid for with federal tax dollars.
This is just one more example of how the Obama administration side steps laws it feels hinder them in their reelection plans.
