In a February 2023 Iowa Court of Appeals case, David Allen Schmitz (Schmitz) sued the Nevada Community School District and Dr. Steve Gray, the Superintendent, alleging he was terminated for being a whistleblower. His whistleblowing claim was originally dismissed by the District Court and this dismissal was affirmed by the Iowa Court of Appeals.
The core of this case goes to the issue of the validity of the separation (or severance) agreement Schmitz signed, and whether or not the claim waiver in that separation agreement defeated a whistleblower claim.
Schmitz first began working for the school district in July 2014 as a food service director. While Schmitz had inherited a deficit in the dietary services budget, during the term of his employment budget issues continued, and Schmitz 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 that no final resolution could be reached as department records had not been properly maintained.
Schmitz was ultimately terminated from employment, signing a separation agreement in March 2020. Subsequently, in October 2020, Schmitz filed a petition against the defendants alleging wrongful termination in violation of public policy, violation of the whistleblower statute as well as a defamation claim. All claims were subsequently dismissed in 2022 via a summary judgment motion.
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