The WARN Act (Worker Adjustment and Retraining Notification Act) protects workers, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs.

The Office of Management and Budget (OMB) wrote a memorandum late last month detailing that the government would compensate contractors for legal costs if layoffs occur due to contract cancellations under "sequestration" on January 2, 2012. The memorandum said that if plant closings or mass layoffs occur under sequestration, then “employee compensation costs for WARN act liability as determined by a court” would be paid for by the contracting federal agency.

Senator McCain estimated that legal fees could total $4 billion and pledged to deny any transfers of defense dollars to reimburse contractors for costs that could have been avoided simply by complying with the WARN Act.

Find the results of last week's instaPoll here.

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