Osceola Foods faces class-action lawsuit

A class-action lawsuit recently filed against Osceola Foods contends the company has failed to properly compensate its employees for overtime pay.

A West Des Moines law firm and previous Osceola Foods employee Kathy Havard filed the suit in Clarke County Dec. 30 on behalf of all employees who claim they were routinely forced to work while off the clock.

According to J. Barton Goplerud of Hudson, Mallaney, Shindler and Anderson law firm, the company didn't pay employees wages for "gowning and de-gowning" in a uniform, a process required at the Hormel meat processing plant.

Because of this, employees lost an estimated 25 minutes of overtime pay each day.

"The employees were subject to these uniform policies," Goplerud said. "Under Iowa law, they are required to be compensated and they haven't been."

The employees worked the unpaid time before and after their scheduled shifts and didn't receive pay for those hours. Since the employees would be working above their 40-hour work week, these unpaid hours qualify for overtime pay.

An investigation that started eight months ago showed the practices have been ongoing for years, Goplerud said. But under statutory limitations, the case can only be tried for a two-year period.

The investigation focuses on the Osceola plant and not any other Iowa Hormel companies.

Goplerud said the lawsuit is concentrated on the time spent preparing for the shift, but they are investigating whether there were more unpaid hours.

"We don't know if there are any other issues at this point concerning meal times or break times," Goplerud said.

Steven Weers, the general manager of the plant, is also named as a defendant. The lawsuit states Weers had the authority to make employee compensation decisions and was responsible for supervising wage and hour practices.

Weers declined to comment.

Goplerud said it is common to file against an individual when it is thought that the person had specific knowledge of the activities taken place.

Havard and the law firm are seeking compensation for the unpaid hours plus interest and liquidated damages. This could cost the company millions if a judge rules in favor of the estimated 1,000 employees affected.

Goplerud said he didn't want to disclose the amount they are requesting, but that 25 minutes of overtime a day really adds up for the employees who make between $11.65 and $13.45 an hour.

"We'll also ask for up to two times the damages plus attorney fees," he said.

Goplerud said they are suing on behalf of those who currently and previously worked at the plant in that two-year time period, but wouldn't say how many are actually backing the lawsuit.

"That's something that I can't disclose," he said. "It's an issue I'm not prepared to talk about at this time."

Currently the plant employs 677, according to a Human Resources Manager Aaron Peterson.

Peterson declined further comment.

A trial date isn't set, but the case has to be tried 18 months from filing. A jury trial was requested by the law firm.

"I think that the jury will be able to easily understand what we believe to be the wrongdoings of Osceola Foods to hundreds of employees," he said.

Hudson, Mallaney, Shindler and Anderson law firm has won class-action lawsuits in Iowa similar to this one, including a case against Casey's General Store.