In a memo from two officials of the Office of Management and Budget to chief financial officers, the White House generously offered to cover “certain liability and litigation costs” incurred by companies who agree to hold off sending out timely layoff notices as mandated by the WARN Act.

The WARN Act requires employers to “provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate unit of local government.”

Recently the Department of Labor issued similar guidelines instructing Pentagon contractors not to give the required notice to its employees that they might need to look for a new job. The Labor Department’s guidelines are intended to stop Pentagon contractors from warning employees about possible layoffs that may come about because of “sequestering.”

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