913 N.W.2d 610
Iowa2018Background
- Susan Ackerman, an Iowa Workforce Development administrative law judge, was covered by a collective bargaining agreement (CBA) that protected against discipline or discharge without cause and provided a grievance/arbitration procedure.
- Ackerman testified before the Iowa Senate Government Oversight Committee about alleged pressure by IWD leadership to decide cases in favor of employers.
- After her testimony she was suspended and then terminated; she sued the State, division leaders, and others asserting multiple claims including a common‑law wrongful discharge (retaliatory discharge in violation of public policy).
- The State moved to dismiss the common‑law retaliatory discharge claim arguing that the tort is limited to at‑will employees; the district court granted the motion and dismissed the claim.
- The court of appeals reversed, holding contract (CBA‑covered) employees may bring common‑law retaliatory discharge claims; the Iowa Supreme Court granted further review.
- The Iowa Supreme Court held generally that contract employees may bring common‑law retaliatory discharge claims, vacated the district court judgment, and remanded for further proceedings — but declined to decide on whether Ackerman’s statutory remedy under Iowa Code §70A.28 precludes her common‑law claim (the exclusivity issue was not litigated below).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the common‑law tort of retaliatory discharge is categorically limited to at‑will employees | Ackerman: tort protects public policy and should apply to CBA‑covered employees whose discharge undermines public policy | State: tort is an exception to at‑will doctrine and therefore unavailable to contract employees | Court: Rejected categorical at‑will limitation; contract employees generally may bring the tort |
| Whether existing contract or statutory remedies preclude the common‑law tort | Ackerman: contractual/statutory remedies do not displace a tort that vindicates public interests and provides deterrent/punitive remedies | State: CBA and statutory remedies (including §70A.28) are adequate and thus preclude the tort | Court: Contract remedies do not categorically preclude the tort; but remanded because exclusivity of §70A.28 (statutory remedy) was not raised below and was not decided |
| Procedural/threshold question whether this case was the proper vehicle to decide expansion of tort | N/A (defendants raised at‑will limitation below; exclusivity of statute raised only on further review) | N/A | Court proceeded to decide general availability to contract employees but remanded on statutory‑exclusivity issue due to preservation concerns |
Key Cases Cited
- Springer v. Weeks & Leo Co., 429 N.W.2d 558 (Iowa 1988) (adopted retaliatory‑discharge tort to protect at‑will employees and public policy)
- Conaway v. Webster City Prods. Co., 431 N.W.2d 795 (Iowa 1988) (CBA‑covered employees’ retaliatory discharge claims treated as state tort claims, not preempted)
- Jasper v. H. Nizam, Inc., 764 N.W.2d 751 (Iowa 2009) (framework for categories of protected activity supporting public‑policy discharge claims)
- Fitzgerald v. Salsbury Chem., Inc., 613 N.W.2d 275 (Iowa 2000) (truthful testimony as a clear public policy supporting the tort)
- Keveney v. Missouri Military Academy, 304 S.W.3d 98 (Mo. 2010) (recognizing wrongful‑discharge tort applies to contract employees; distinguishes tort from contract remedies)
- Gonzalez v. Prestress Eng’g Corp., 115 Ill.2d 1 (Ill. 1986) (permitting union/CBA employees to pursue state tort claims grounded in public policy)
- Retherford v. AT & T Commc’ns of the Mountain States, Inc., 844 P.2d 949 (Utah 1992) (extended tort to contract employees to vindicate public policy and allow tort remedies)
- Byrd v. VOCA Corp. of Washington, D.C., 962 A.2d 927 (D.C. 2008) (contract employees may bring retaliatory‑discharge tort; tort duty arises from public policy, not contract)
- Hagen v. Siouxland Obstetrics & Gynecology, PC, 799 F.3d 922 (8th Cir. 2015) (predicting Iowa would limit tort to at‑will employees; relied on prior Iowa cases)
