May 2010

By: Joseph H. Laverty, Esq.

On March 22, 2010, the Iowa Worker Adjustment and Retraining Notification (WARN) Act was signed by Iowa's Governor and will become effective July 1, 2010. Employers with 25 or more employees must now give workers 30 days' notice of a business closing or layoff.

This law is patterned after the federal WARN Act but covers more state employers than the federal law. If part or all of a business is sold, the seller must provide notice of any closing or layoff that will occur before the sale's effective date. After the date of the sale, the buyer is responsible for giving notice of any layoff or closing. Notices must include the location where the closing or layoffs will occur and the company's contact person for more information. The employer must also specify whether the job action is expected to be permanent or temporary, provide the job titles of the affected positions together with the names of the employees in those jobs and if the layoffs will extend over time and their anticipated schedule.

The legislation includes a number of exemptions. Businesses that have strikes or lockouts will not be required to provide notice of layoffs, and notice is not required from businesses that are faltering, provided they are able to document their attempts at raising capital. Companies that are affected by unforeseen business circumstances or natural disasters also will be exempt from the bill's provisions.

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