Major defense contractors are wary of the impending cuts and debating whether they need to advise employees 60 days in advance of possible layoffs. That would be four days before the election. A law says those notices would have to go out ahead of time.
The Labor Department, however, said Monday that federal contractors do not have to warn their employees about potential layoffs from the automatic, across-the-board budget cuts due to kick in Jan. 2. The guidance letter said it would be "inappropriate" for employers to send such warnings because it is still speculative if and where the cuts might occur.
The White House told agency officials Tuesday to "continue normal spending and operations" since more than five months remain for Congress to act to avert the automatic cuts.
According to a U.S. government official, the automatic budget cuts would slash about 10,000 jobs within the intelligence community. The official spoke on condition of anonymity because the official was not authorized to speak publicly about numbers that have not been released.
Associated Press writer Lolita C. Baldor contributed to this report.
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