Former UNI Student Health director settles age-discrimination lawsuit, agrees to retire

CEDAR RAPIDS — Just over a month after suing the University of Northern Iowa for alleged age discrimination, the campus’ former student health director has settled — taking $222,193 to walk away from her job.

Shelley O’Connell, 59, of Cedar Falls, sued UNI and the Board of Regents in June — just over a year after she was demoted in April 2024 and received a “drastic” pay cut of about $50,000, according to the lawsuit.

As assistant vice president and executive director for UNI Student Health and well-being, O’Connell in 2023 had been making a base salary of $153,244, according to the state salary database. That fell to $100,000 in fiscal 2024.

“Shelley will have to work longer than she had anticipated because her wages were slashed by more than $50,000 per year, thereby delaying her ability to retire,” according to her lawsuit.

Per the settlement signed July 1, O’Connell agreed to voluntarily retire from UNI that same day and not apply for or accept any UNI position or contract work in the future.

As part of the arrangement, O’Connell agreed to “conclude all outstanding work and projects in accordance with reasonable work expectations, and identify all remaining work assignments that are incomplete and detail the work that is remaining.”

Within 60 days of returning all UNI-owned equipment and items, O’Connell will receive a separation payment of $222,193 — including a $53,000 payroll check, an $80,120 nonwage payment, and $89,072 in attorneys fees.

“O'Connell acknowledges that such payment is not to be construed as an admission of liability or wrongdoing on the part of any of the released parties, and that all released parties expressly deny any such liability or wrongdoing,” according to the settlement.

‘Shelley’s protected status’

UNI hired O’Connell in 2001 as an administrative specialist, and she worked her way up to assistant vice president and student health director in 2022 — landing three promotions along the way, according to her lawsuit.

In 2020 — with COVID crippling daily life, including on college and university campuses — O’Connell as Student Health and Wellbeing executive director was “instrumental” in signing a contract to get COVID rapid tests on campus, according to a UNI news release about a presidential honor she received at that time.

“UNI would become one of the first universities in the Midwest to have the kits available to the student population — a minor miracle, considering the U.S. at the time was still many months away from viable COVID vaccines,” according to UNI. “Because of O’Connell’s role in helping campus access COVID tests and more, President Mark A. Nook honored O'Connell with a Presidential Medallion in August. This new award recognizes UNI faculty and staff for their exceptional service.”

Throughout her time as assistant vice president, O’Connell had positive performance reviews, “including the year and a half she reported to (Vice President of Student Life) Heather Harbach from 2022-2024.”

But during a one-on-one meeting in August 2023, according to the lawsuit, O’Connell said Harbach asked if she’d thought about stepping down. O’Connell said she had no imminent plans to retire, and Harbach asked “if Shelley wanted to ease out of her role and not supervise staff anymore.”

After O’Connell said she did not and “refused to retire,” their relationship soured, according to the lawsuit. Concerned Harbach might be trying to force her out due to her age, O’Connell brought her concerns to UNI’s Title IX office.

She officially was demoted on April 26 from assistant vice president to “assistant to the vice president,” also stripping her responsibilities and “reassigned them to two younger AVPs.”

Despite her 37 years in health care and public health, O’Connell said the younger vice presidents “took over Shelley’s role as the person overseeing all of the medical facilities on campus, including the student well-being, counseling center, and the health clinic.”

“Defendants permitted Shelley’s protected status as an older female to motivate the following forms of unlawful conduct,” according to her lawsuit. “Failing to treat her equally to younger employees, allowing her to be discriminated against by her supervisor, holding her to different and higher standards, removing her from her AVP position and demoting her to an assistant position while paying her less.”

Vanessa Miller covers higher education for The Gazette.

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