Graham, McCain: No Compensation for WARN Act Violations

Senators Lindsey Graham and John McCain are pushing back against the Obama administration’s promise to compensate contractors for legal fallout from WARN Act violations, a law requiring large companies to provide 60-day minimum notice of potential layoffs. As I wrote yesterday, the administration has urged contractors in advance of the Jan. 2 sequestration not to issue WARN notices, which would otherwise be sent just days before the presidential election. After contractors expressed concern about potential lawsuits, the OMB released a directive offering to pay for resulting legal penalties in certain situations.