Sec. 4471. NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR DEFENSE PROGRAMS
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## SEC. 4471 NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR DEFENSE PROGRAMS **[**[10 U.S.C. 2501 note](/us/usc/t10/s2501)**]** ###
(a)Notice Requirement After Enactment of Appropriations Act Each year, not later than 60 days after the date of the enactment of an Act appropriating funds for the military functions of the Department of Defense, the Secretary of Defense, in accordance with regulations prescribed by the Secretary— ####
(1)shall identify each contract (if any) under major defense programs of the Department of Defense that will be terminated or substantially reduced as a result of the funding levels provided in that Act; and ####
(2)shall ensure that notice of the termination of, or substantial reduction in, the funding of the contract is provided— #####
(A)directly to the prime contractor under the contract; and #####
(B)directly to the Secretary of Labor. ###
(b)Notice to Subcontractors Not later than 60 days after the date on which the prime contractor for a contract under a major defense program receives notice under subsection (a), the prime contractor shall— ####
(1)provide notice of that termination or substantial reduction to each person that is a first-tier subcontractor under that prime contract for subcontracts in an amount not less than $500,000; and ####
(2)require that each such subcontractor— #####
(A)provide such notice to each of its subcontractors for subcontracts in an amount in excess of $100,000; and #####
(B)impose a similar notice and pass through requirement to subcontractors in an amount in excess of $100,000 at all tiers. ###
(c)Contractor Notice to Employees and State Dislocated Worker Unit Not later than two weeks after a defense contractor receives notice under subsection (a), the contractor shall provide notice of such termination or substantial reduction to— ####
(1)#####
(A)each representative of employees whose work is directly related to the defense contract under such program and who are employed by the defense contractor; or #####
(B)if there is no such representative at that time, each such employee; and ####
(2)the State or entity designated by the State to carry out rapid response activities under section 134(a)(2)(A) of the Workforce Investment Act of 1998, and the chief elected official of the unit of general local government within which the adverse effect may occur. ###
(d)Constructive Notice The notice of termination of, or substantial reduction in, a defense contract provided under subsection (c)(1) to an employee of a contractor shall have the same effect as a notice of termination to such employee for the purposes of determining whether such employee is eligible to participate in employment and training activities carried out under title I of the Workforce Investment Act of 1998, except in a case in which the employer has specified that the termination of, or substantial reduction in, the contract is not likely to result in plant closure or mass layoff. ###
(e)Loss of Eligibility An employee who receives a notice of withdrawal or cancellation of the termination of, or substantial reduction in, contract funding shall not be eligible, on the basis of any related reduction in funding under the contract, for training, adjustment assistance, and employment services under section 325 or 325A of the Job Training Partnership Act or to participate in employment and training activities under title I of the Workforce Investment Act of 1998, beginning on the date on which the employee receives the notice. ###
(f)Definitions For purposes of this section: ####
(1)The term “**major defense program**” means a program that is carried out to produce or acquire a major system (as defined in section 2302(5)2 of title 10, United States Code). 2Effective on January 1, 2022, section 4471(f)(1) is amended by section 1806(e)(2)(E) of Public Law 116–283 by striking “section 2302(5)” and inserting “section 3041”. ####
(2)The terms “**substantial reduction**” and “substantially reduced”, with respect to a defense contract under a major defense program, mean a reduction of 25 percent or more in the total dollar value of the funds obligated by the contract. * * * * * * *
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Sec. 4471
NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR DEFENSE PROGRAMS
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