layoff | The Contracting Education Academy

March 1, 2013 By AMK

Federal contractor issues layoff warnings, citing budget uncertainty

European weapons maker BAE Systems reported stronger-than-expected earnings Thursday, after issuing conditional layoff notices to 3,500 shipyard employees in Florida, Hawaii and Virginia, citing uncertainty in the federal budget.

BAE Systems sent the layoff warnings Wednesday to comply with the 1988 Worker Adjustment and Retraining Notification Act, which requires companies with more than 100 employees to issue notices 60 days before mass layoffs or plant closures.

In an email to employees in Mayport, Fla.; Norfolk, Va.; Pearl Harbor, Hawaii; and San Diego, the company said an “intent to cancel” order from the Navy regarding ship maintenance availabilities necessitated the distribution of the notices.

A spokesman for BAE Systems told Government Executive that this round of WARN Act notices were tied to the upcoming expiration of the continuing resolution on March 27, not the budget sequester slated to take effect on March 1. He said the company was awaiting more information on specific program cuts from sequestration before evaluating possible layoffs.

Keep reading this article at: http://www.govexec.com/contracting/2013/02/federal-contractor-issues-layoff-warnings-citing-budget-uncertainty/61429/?oref=govexec_today_nl

January 9, 2013 By AMK

Consider sending layoff warnings, law firm tells federal contractors

With sequestration delayed until early March, contractors should consider issuing sequestration-related layoff notices despite an absence of guidance from the Obama administration, according to a law firm.

In an analysis by Littler Mendelson, a labor and employment law firm, government contractors could face lawsuits if they do not issue layoff notices to comply with the 1988 Worker Adjustment and Retraining Notification Act.

The law requires any company with more than 100 employees to issue layoff notices 60 days in advance of any mass layoff or plant closure. With sequestration delayed by the major budget agreement signed by President Obama on Tuesday, the briefing says, companies may need to act fast to avoid falling afoul of federal or state versions of the WARN Act.

Keep reading this article at: http://www.govexec.com/contracting/2013/01/consider-sending-layoff-warnings-law-firm-tells-federal-contractors/60466/?oref=govexec_today_nl.

October 3, 2012 By AMK

Sequestration memo sets stage of allowable costs

In its latest guidance, the White House has set the parameters under which it will let contractors bill the government for the cost of layoffs and contract changes caused by sequestration, if it occurs.

The Sept. 28 memo also reiterates the Labor Department’s position that potential for sequestration does not trigger the Worker Adjustment and Retraining Notification Act, known as the WARN Act, that requires companies to give 60 days of notice before a layoff.

The White House said that contractors can bill the government for costs under two circumstances.

1. If sequestration occurs, and it causes a company to lay off workers or close a plant.

2. The contractor has followed Labor Department guidance on sequestration, and has competition costs for WARN Act liability as “determined by a court as well as attorney fees and other litigation costs.”

Keep reading this article at: http://washingtontechnology.com/articles/2012/10/01/sequestration-memo.aspx

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