Iowa Workforce Development Files Final Rule, Removes New Severance Definition

Iowa Workforce Development (IWD) filed the final version of rules, which originally included a new definition of “severance pay.” ABI members expressed concerns over the proposed definition, which restricted the term to “any payment based solely on the years of service and is not conditioned on the individual giving up any legal right or the release of any rights." ABI commented to the rules committee and IWD about the concerns. The proposed definition change was removed from the rules. We will work with IWD during the interim to clarify the practical implementation and meaning of severance pay in accordance with our policy committee process. For more information about this issue, please contact Jessica Hyland or Nicole Crain.