Iowa food service director makes losing whistleblower claim

The Iowa Court of Appeals recently heard a case from a worker who sued his former employer claiming he was fired because he was a whistleblower. The core of the case goes to the issue of the validity of the separation (or severance) agreement he signed and whether the claim waiver in the agreement defeated a whistleblower claim. Read on to learn what it means for Iowa employers going forward.

Facts

David Allen Schmitz first began working for the Nevada Community School District in July 2014 as a food service director. Although he had inherited a deficit in the dietary services budget, budget issues continued during his term, and he was counseled on budget as well as general employee morale.

Anonymous allegations were made regarding potential food theft in the department, with the state auditor’s office eventually concluding no final resolution could be reached because department records hadn’t been properly maintained.

Schmitz was ultimately fired and signed a separation agreement in March 2020. In October 2020, he filed a petition against the school district and Superintendent Dr. Steve Gray, alleging wrongful termination in violation of public policy, violation of the whistleblower statute, and defamation. All claims were subsequently dismissed in 2022 via a request for summary judgment (dismissal without a trial), which Schmitz appealed.

Separation agreements