Analysts: Obama Probably Won’t Have to Pay Arms-Makers for Ignoring Law

Senators Warn Companies They Will Block Disputed Payments

by Jason Ditz, October 07, 2012

Though it has certainly caused quite a stir, the Obama Administration’s promise to provide government funds to cover any fines or lawsuits resulting in defense contractors ignoring the WARN Act ahead of the November election is not ever likely to come up, analysts say.

Indeed, they say even if the contractors choose to ignore the law they likely won’t be on the hook for any fines or lawsuits to begin with, because the administration can always wait a few days before canceling the contracts to allow them to squeak by.

The WARN Act is meant to give employees 60 days advance notice of anticipated layoffs, and the Obama Administration has told arms makers not to provide notices related to sequestration, as those notices would come just four days ahead of the presidential election. This has led to charges of bribery, though it also satisfied many arms makers that they could safely ignore the law.

At least that’s their hope, but Sens. John McCain (R – AZ) and Lindsey Graham (R – SC) have issued a letter warning the companies that they will block any efforts to use taxpayer dollars to reimburse the companies for violating the law.

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