Economics

White House Playing Coy on Defense Layoffs?

GOP lawmakers say the White house is leaning on defense contractors to stay mum about likely post-election job cuts

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Republicans on Tuesday accused the White House of trying to "intimidate" defense companies into keeping silent about major job losses if automatic military spending cuts take effect early next year, after the administration said Monday that it would be "inappropriate" for employers to warn workers of layoffs.

Defense industry officials were caught in the middle, trying to weigh the requirements of a federal law that says they must give employees 60 days' notice before major layoffs versus the Labor Department, which said Monday that it doesn't believe the law applies in this case.