The federal Worker Adjustment and Retraining Notification Act (WARN) offers protection to workers by requiring employers to give 60-calendar-days’ advance notice of covered plant closings and covered mass layoffs, unless an exception applies. This notice must be given to either the affected workers or their representatives, such as labor unions or bargaining units, as well as the State Dislocated Worker Unit and the appropriate unit of local government. The Iowa Worker Adjustment and Retraining Notification Act (Iowa WARN) is a state counterpart to WARN and imposes different notification requirements for certain Iowa employers as discussed below.
A company’s failure to comply with WARN can be a critical and costly mistake. An employer who fails to meet WARN’s advance notice requirement is liable for full back pay and benefits to each displaced worker for each day that notice was not given during the 60-day period. In cases where large plant closings displace many employees, these liabilities can add up quickly and substantially affect a company. In addition, a violating employer may be liable for civil penalties, and attorneys’ fees and costs.
While the federal WARN Act applies to employers of 100 or more full-time...
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