IOWA CITY, Iowa (AP) — Iowa's labor agency has agreed to dramatically reduce proposed fines against the former owners of a kosher slaughterhouse with the hope that it can recoup a fraction of the penalties.
Iowa Workforce Development reached a settlement Friday with the Agriprocessors, Inc., bankruptcy trustee to cut fines of almost $10 million to $1 million. The meatpacker was sold last week to newly formed SHF Industries.
The motion filed Friday in U.S. Bankruptcy Court in Cedar Rapids still needs the approval of Judge Paul Kilburg. The claim would get priority status if approved, leaving some chance Agriprocessors could pay it.
The state alleges Agriprocessors made illegal deductions from employee paychecks. Agriprocessors was the site of a massive immigration raid in 2008.