Iowa recently passed a new WARN Act which will cover all Iowa employers with 25
or more full time employees. It is effective July 1, 2010. The Federal WARN Act applies only to employers of 100 or more full time
employees. Consequently, many Iowa employers are either not covered by the
Federal WARN Act or do not have layoffs in the numbers necessary to trigger
obligations under the federal statute.
Iowa WARN Act notification
obligations are triggered only by a “business closing” or a
“mass layoff.” Under the Iowa Act, a covered Iowa employer must
provide a thirty-day written notice to affected employees and Iowa Workforce
Development before implementing a business closing or mass layoff. A business
closing refers to the permanent or temporary shutdown of a single site of
employment if the shutdown results in an employment loss for 25 or more
employees, other than part-time employees. A “mass layoff” refers
to a reduction in force that is not the result of a business closing and which
will result in an employment loss at a single site during any 30-day period for
at least 25 or more employees other than part-time employees. However, the
Iowa WARN Act defines a “part-time employee” as one who is employed
for an average of less than 20 hours per week. It also includes a full
time employee who has been employed for fewer than 6 of the 12 months preceding
the date on which notice is required.
Exceptions
The Iowa WARN Act provides
an extensive description of exemptions and complex rules involving layoffs in
connection with the sale of a business, strikes or lockouts, rolling layoffs,
faltering companies, unforeseeable business circumstances, and natural disasters.
Differences from Federal WARN Act
Under the Federal Act, if a
notice is not given and a court later determines that it should have been, then
the company may be liable for the wages and benefits denied during the required
notice period plus attorney’s fees. The Iowa WARN Act statute does not
authorize such a private court action. Failure to provide appropriate notice
under the Iowa Act subjects an employer to a civil penalty of not more than
$100 per day per affected employee per violation, and removes from courts
jurisdiction to enjoin a business closing or mass layoff.