By: Joseph H. Laverty, Esq.

Many Iowa small businesses are not obligated to follow the Federal Worker Adjustment and Retraining (WARN) Act requirement because of their size. However, the Iowa Worker Adjustment and Retraining Notification (Iowa WARN) Act (House File 681) was introduced and passed the Iowa House of Representatives and will now go to the State Senate.

The Iowa House passed this bill by a large margin and if and/or when it is approved by the Senate, please be sure that you are familiar with all of the "definitions" and the intricacies involved with the bill. If approved, employers will be required to notify employees, or their representatives, and the Department of Workforce Development of business closings that result in a layoff of 25 or more full-time employees and mass layoffs that are a reduction of the workforce of at least 25 employees in a 30-day period. Wessels Sherman will update you as any new developments arise; however, Iowa employers should realize the real likelihood that there will be a new state law regarding business closings and layoffs by the end of this year. We will let you know if/when the Iowa Senate passes the bill.

Questions? Please contact WS Shareholder and Senior Attorney Joseph H. Laverty at (563) 333-9102, or jolaverty@wesselssherman.com.