Green Energy
Fox:
Republicans rip White House for putting tax dollars on line over possible defense layoffs
If a $16 trillion debt wasn't enough for taxpayers to lose sleep over, the Obama administration has offered to pick up the check -- at taxpayer expense -- for legal costs associated with defense industry layoffs should automatic Pentagon cuts be triggered.
Republicans are now crying foul over the move, accusing the White House of playing politics over the possibility of mass layoffs. At issue are the crush of Pentagon budget cuts set to go into effect starting in January should Congress fail to avert them. Under federal law, many employers are supposed to give 60-day notice of "mass layoffs" if they are considered likely, but the Obama administration for months now has urged companies not to do so.
Last week, the administration doubled down on that plea by offering to cover legal fees in compensation challenges.
Rep. Buck McKeon, R-Calif., chairman of the House Armed Services Committee, said the notice amounted to a "threat" to contractors.
"It appears companies will bow to the threat implicit in last week's OMB guidance; withhold notices today or the government might not cover your court costs down the road," he said.
Further, McKeon warned that the administration was using tax dollars to win over companies to follow the "dubious" and "politically motivated" guidance to ignore the federal law known as the WARN Act.
"Even though the (White House budget office) directive purports to protect the defense industry against the costs of not complying with the WARN Act, they cannot guarantee how the courts would rule in such an action. Thus the president has pledged to compound the impact of sequestration by dedicating already scarce resources to cover needless court costs," McKeon said.
Sen. John Thune, R-S.D., also said it was "troubling that the Obama administration would openly encourage the violation of federal law and offer to pay the legal fees that resulted."
Sen. Lindsey Graham, R-S.C., claimed Obama was trying to prevent layoff notices from hitting mailboxes "right before the election."
"This is typical Barack Obama politics -- being supportive of the WARN Act when convenient and against it when it creates political downside," Graham said. "This is the most outcome-based White House in memory."
Lockheed Martin has reportedly already backed off threats to issue thousands of layoff warnings ahead of the election, in response to the administration's latest assurances and guidance.
The offer to pay the legal fees was included in a memorandum issued by the administration Friday that also restated the Labor Department's position from July that contractors should not issue written notices to employees because of the "uncertainty" over the across-the-board cuts to the defense budget and other federal spending that will occur Jan. 2 unless Congress reaches a new deal.
The notices are required under the Worker Adjustment and Retraining Notification Act and generally require employers with more than 100 employees to provide 60-day notices of "mass layoffs if they are reasonably foreseeable."
The projected $500 billion in Pentagon cuts under the so-called sequestration will occur because Congress failed to agree on a deficit-reduction plan in the wake of the deal last summer to raise the debt ceiling.
The guidance issued by the Labor Department this summer stated "it is neither necessary nor appropriate" for federal contractors to issue the warnings.
The latest memorandum states the federal government would cover employee compensation under the WARN Act -- "irrespective of the outcome" as long as the contractor follows the Labor Department guidelines.
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Under Federal Law employees who may be laid off because of sequestration must be given 60 days notice before the layoff occurs. That means that they must receive those notices no later than November 1 if sequestration looks like it may happen. The elction,...
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Green Energy
Fox:
Republicans rip White House for putting tax dollars on line over possible defense layoffs
If a $16 trillion debt wasn't enough for taxpayers to lose sleep over, the Obama administration has offered to pick up the check -- at taxpayer expense -- for legal costs associated with defense industry layoffs should automatic Pentagon cuts be triggered.
Republicans are now crying foul over the move, accusing the White House of playing politics over the possibility of mass layoffs. At issue are the crush of Pentagon budget cuts set to go into effect starting in January should Congress fail to avert them. Under federal law, many employers are supposed to give 60-day notice of "mass layoffs" if they are considered likely, but the Obama administration for months now has urged companies not to do so.
Last week, the administration doubled down on that plea by offering to cover legal fees in compensation challenges.
Rep. Buck McKeon, R-Calif., chairman of the House Armed Services Committee, said the notice amounted to a "threat" to contractors.
"It appears companies will bow to the threat implicit in last week's OMB guidance; withhold notices today or the government might not cover your court costs down the road," he said.
Further, McKeon warned that the administration was using tax dollars to win over companies to follow the "dubious" and "politically motivated" guidance to ignore the federal law known as the WARN Act.
"Even though the (White House budget office) directive purports to protect the defense industry against the costs of not complying with the WARN Act, they cannot guarantee how the courts would rule in such an action. Thus the president has pledged to compound the impact of sequestration by dedicating already scarce resources to cover needless court costs," McKeon said.
Sen. John Thune, R-S.D., also said it was "troubling that the Obama administration would openly encourage the violation of federal law and offer to pay the legal fees that resulted."
Sen. Lindsey Graham, R-S.C., claimed Obama was trying to prevent layoff notices from hitting mailboxes "right before the election."
"This is typical Barack Obama politics -- being supportive of the WARN Act when convenient and against it when it creates political downside," Graham said. "This is the most outcome-based White House in memory."
Lockheed Martin has reportedly already backed off threats to issue thousands of layoff warnings ahead of the election, in response to the administration's latest assurances and guidance.
The offer to pay the legal fees was included in a memorandum issued by the administration Friday that also restated the Labor Department's position from July that contractors should not issue written notices to employees because of the "uncertainty" over the across-the-board cuts to the defense budget and other federal spending that will occur Jan. 2 unless Congress reaches a new deal.
The notices are required under the Worker Adjustment and Retraining Notification Act and generally require employers with more than 100 employees to provide 60-day notices of "mass layoffs if they are reasonably foreseeable."
The projected $500 billion in Pentagon cuts under the so-called sequestration will occur because Congress failed to agree on a deficit-reduction plan in the wake of the deal last summer to raise the debt ceiling.
The guidance issued by the Labor Department this summer stated "it is neither necessary nor appropriate" for federal contractors to issue the warnings.
The latest memorandum states the federal government would cover employee compensation under the WARN Act -- "irrespective of the outcome" as long as the contractor follows the Labor Department guidelines.
- White House: Federal Contractor Executive Pay Higher Than Obama’s Salary Is “excessive”
Obama Contemplates The Little People From the Weekly Standard: On Thursday, the White House’s administrator for federal procurement policy, Joe Jordan, wrote on the White House blog about a legislative initiative that President...
- Right On Schedule
Human Events: Obama wants short-term fix on sequester President Barack Obama called on Congress to agree to temporary spending cuts to avoid sequestration Tuesday, agreeing that “the full budget may not be finished before March 1.” But much...
- Obama Admin Ignores Federal Law. Again.
Under Federal Law employees who may be laid off because of sequestration must be given 60 days notice before the layoff occurs. That means that they must receive those notices no later than November 1 if sequestration looks like it may happen. The elction,...
-
Fox: Obama to Unveil Deficit Plan Containing $1.5T in Tax Hikes WASHINGTON – President Obama will unveil a new deficit reduction plan Monday anchored by $1.5 trillion in new taxes, a package that Republicans will surely deem dead-on-arrival after ruling...
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Fox Business: Obama to Banks: We're Not Defaulting By Charlie Gasparino While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately...