Injunction filed against Iowa City waste company over workers’ comp insurance

IOWA CITY — Johnson County has filed an injunction against Hawkeye Waste Systems and affiliated companies to stop all business operations because the companies don’t have workers’ compensation insurance, which came to light after an employee was crushed by a skid loader in October 2024.

The injunction motion, filed by Johnson County Attorney Rachel Zimmermann Smith, is asking the court for grant a temporary injunction to immediately “cease and desist” from doing any business in the county. She also asks the court to grant a permanent injunction to prevent the defendants from doing business or employing any workers in Johnson County.

This same violation has occurred in the past, is currently occurring and is “likely to continue occurring,” the motion asserts.

The owners and managers of Hawkeye Waste, 91 Commercial Dr., in Iowa City were charged last month for not having workers’ compensation insurance, which was discovered through an investigation after a workplace accident in which Matthew Reuwsaat, 61, a skid loader operator, suffered a severe head injury on Oct. 31, 2024.

He later died from his injuries Nov. 9, 2024, at University of Iowa Health Care Medical Center in Iowa City, according to court documents.

Reuwsaat was crushed by a skid loader, according to an Occupational Safety and Health Administration fatality data report.

An investigation by OSHA and the Iowa Division of Workers’ Compensation revealed Hawkeye Waste Systems did not have workers’ compensation insurance and has not been approved to be self-insured by the Iowa Insurance Division, according to court documents.

James Watts, 82, president and owner of Hawkeye Waste; Chris Watts, 30; Mary Sheen, 59; and Chris Dohrer, 43, each were charged with failure to maintain workers’ compensation insurance, a Class D felony.

Individuals named in injunction operate other Iowa businesses

James Watts and his son, Chris Watts, also are named in the injunction motion filed Thursday in Johnson County District Court.

Hawkeye’s affiliated companies, Watts Trucking Service, Inc., and J.L. Watts Company, also are included in the injunction action.

According to the motion, Watts Trucking is the primary business operating or managing behind many other entities and may be providing funding or financing for other businesses, including Hawkeye Waste. Watts Trucking paid a penalty to the Iowa Division of Labor for failure to timely report Reuwsaat’s workplace injury on Oct, 31, 2024, the motion stated.

J.L. Watts Company owns the real estate where Hawkeye Waste operates its business, the motion stated.

The individuals behind these businesses also operate similar businesses in nearby counties in Eastern Iowa where workers also have been injured and not covered by workers’ compensation, the motion asserts. The other businesses include Black Hawk Waste Disposal and Cedar Valley Recycling & Transfer in the Waterloo and Cedar Falls area; A-1 Disposal Service in Cedar Rapids; and County Waste Disposal/County Waste Systems in Muscatine and the Quad Cities.

Johnson County is asking that any court order should apply the temporary or permanent injunctions against each defendant, including their employees, independent contractors, salespersons, representatives, officers and directors, principals, partners, affiliates and parent companies.

James Watts previously submitted an affidavit clarifying the roles of others within the companies who have been charged and named in the injunction.

James Watts, in the affidavit, said he lives in Scott County and is the owner of Watts Trucking and Hawkeye Waste Systems. He is the sole president and only corporate officer.

“The state is aware of my ownership,” James Watts said in the affidavit. “The state is aware of who is the sole decision-maker in my companies. This has never been a dispute.”

Chris Watts is the general manager of Hawkeye Waste, Sheen is the officer manager and controller of Watts Trucking, and Dohrer is a contract laborer, the affidavit stated. They don’t have any financial responsibility or authority to make decisions and they shouldn’t be charged, the document stated.

James Watts, in the document, said Chris Watts wasn’t on site when the Reuwsaat accident happened. Sheen was contacted by phone about the accident and provided Hawkeye Waste with OSHA’s forms to report the injury. The forms were completed by the local office but not filed as instructed, the affidavit stated.

Dohrer went to Hawkeye Waste to assist when he heard about the accident, according to the affidavit. He also took another employee who was involved with the accident for a drug test at the instruction of Sheen.

In the criminal case, James Watts and Sheen have pleaded not guilty and Chris Watts and Dohrer will be arraigned May 29.

A judge set a hearing on the injunction for July 16 in Johnson County District Court.

Comments: (319) 398-8318; trish.mehaffey@thegazette.com