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Administration urging companies to ignore the WARN Act?

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  • Description

    WH asking Defense contractors not to warn employees about potential layoffs

  • Duration 2:33
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This transcript is automatically generated

Follow up now on last night's story about the Obama administration urging defense contractors.

Not to issue legally required layoff notices despite impending cuts due to the budget impasse known as the sequestration.

Chief congressional correspondent Mike Emanuel has erupted.

By law defense contractors are required to issue layoff notices to employees they may need to cut if the half trillion an automatic cuts -- -- sequestration.

Start taking effect on January 2.

But the Obama administration has told contractors they don't need to follow the warn act by issuing layoff notices sixty days out.

And has offered to pay for legal bills if contractors or later sued.

One legal expert says that's not following the spirit of the law.

But the administration is basically saying that until it gives these companies specific numbers.

The -- really isn't triggered.

Ultimate believed the administration would likely prevail but it would be a close question.

The warn act was designed to protect quote workers their families and communities by requiring employers with 100 or more employees to provide at least sixty calendar days advance written notice of a plant closing and mass layoff affecting fifty or more employees at a single site of employment.

Internally knows -- wont be administration officials paying the price so this is a game of chicken.

Where the two parties in the car.

Are not gonna go over the cliff.

It's going to be thousands of workers if there is an illegal price to pay their could be a political one if layoff letters are issued ahead of Election Day.

George Mason university center for regional analysis has studied the impact of these scheduled cuts on swing states.

In Virginia 122770.

Jobs are at risk.

In Florida 39246.

In Pennsylvania 36157.

In North Carolina New Hampshire and Nevada are some of the other campaign battlegrounds facing job losses.

Arizona senator John -- his companies have a choice.

Whether to rely on the administration's politically motivated guidance or to comply with the law and quote.

I can assure them that I will do everything in my power to ensure that taxpayer dollars are not used to compensate contractors.

Who do not comply with the law.

While the administration is betting it will prevail on this showdown congress does have the power of the purse.

Beyond this fight there's also concerned this would got the warn act.

And may hurt workers and their communities if employers don't feel required to give out playoff notices -- Mike -- back in Washington Mike thank you.

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