Sen. Jim Inhofe (R-Okla.) today warned Corporate America that following the Obama Administration’s “guidance” that they need not comply with the WARN Act will open them up to a flood of costly lawsuits.
The Department of Labor’s guidance letter stated that the statutory provisions of the WARN Act – which requires large companies to notify employees 60 days in advance of mass layoffs - do not apply to more than a million projected sequestration (automatic budget cuts) pink slips:
“Corporate America should not be fooled by the Department of Labor’s recent announcement about the WARN Act, telling employers that sequestration pink slips do not apply under this law and follow-through would be ‘inappropriate,’” Sen. Inhofe warned:
“I have news for Corporate America – sequestration is the current law of the land as is the WARN Act.
“The WARN Act states that any employer who orders a plant closing or mass layoff in violation of Section 3 shall be liable to each aggrieved employee who suffers an employment loss as a result of such closing or layoff.
Obama ‘Setting Up Employers To Be Sued’
“The Obama Administration is setting up employers to be sued and take on a huge financial burden when trial lawyers come out of the woodwork. I recommend companies take a hard look and err on the side of caution by letting their people know what could happen to their jobs in the near future. Is this the type of risk corporations want to take? If I were on the board of directors, I would fire the CEO who took this risk,” Inhofe said.
Automatic Budget Cuts To Cost More Than A Million Jobs
Under The Worker Adjustment and Retraining Notification Act (WARN Act) companies with more than 100 employees must give a 60 days notice of a mass layoff. The Senate Armed Services has received letters from eight defense companies saying they will have to layoff thousands of workers due to sequestration. Sequestration is projected to put more than 1 million Americans out of work, Sen. Inhofe warns.
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