Hawkeye Waste doesn’t have worker’s comp insurance, but says it has applied

IOWA CITY — A lawyer for Hawkeye Waste Systems, during a temporary injunction hearing Wednesday, admitted the company still does not have worker’s compensation insurance, but said the owner has applied for it.

Al Parrish, lawyer for Hawkeye Waste, first argued the court should grant a continuance of the hearing and allow the company to operate another 15 days until it has proof of insurance because the temporary injunction that Johnson County seeks would shut them down and they need time to notify customers.

Parrish asked what “harm” there would be in giving Hawkeye Waste that additional time.

Johnson County Attorney Rachel Zimmermann Smith said the harm is putting more employees at risk. If any employee is harmed — like employee, Matthew Reuwsaat, 61, a skid loader operator who was crushed by the equipment last year — that employee also wouldn’t be covered by worker’s compensation insurance for a workplace accident.

“The only defense is to get insurance,” Zimmermann Smith said.

Sixth Judicial District Judge Kevin McKeever denied the continuance and proceeded with the temporary injunction filed by Johnson County against Hawkeye Waste Systems and affiliated companies, asking the court to stop all business operations because the companies don’t have workers’ compensation insurance.

The lack of insurance came to light after Reuwsaat was crushed by the skid loader Oct. 31, and died Nov. 9, 2024, according to court documents.

The owners and managers of Hawkeye Waste, 91 Commercial Dr., in Iowa City also were charged in April for not having workers’ compensation insurance

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.

Testimony

During the hearing, James Christenson, a deputy worker’s compensation commissioner and administrative law judge with Iowa Workforce Development, testified Hawkeye Waste Systems doesn’t have worker’s compensation insurance, which was revealed after the OSHA investigation of the workplace accident of Reuwsaat.

Christenson forwarded that information to the Johnson County Attorney’s office.

His affidavit was been filed with the county’s petition for the injunction. Included in that petition is a letter from Mary Sheen, the office manager and controller of Watts Trucking, one of Hawkeye Waste’s affiliated companies, who told Christenson the company didn’t have worker’s compensation insurance, he said.

As of Wednesday, there is no record of the company having that insurance or being self-insured.

Reuwsaat’s widow, Christine Reuwsaat testified she was notified by the University of Iowa Health Care emergency services about her husband and what happened that day. She was told by hospital officials that because this was a workplace accident, all the bills would go to Hawkeye Waste.

However, she then received a bill for $185,000 that she was required to pay. She tried to access worker’s compensation benefits but wasn’t able to because she found out the company didn’t have insurance.

Parrish attempted to insinuate Reuwsaat wasn’t working there at the time or wasn’t working the job he had been assigned.

Reuwsaat said her husband received paychecks every Friday and was working the day of the accident. The last paycheck she received included his hours from Oct. 31, 2024.

Some of Parrish’s questions were not allowed.

Reuwsaat said Sheen told her the company didn’t have worker’s compensation insurance.

McKeever said he would file his ruling later and also gave Parrish until Friday to submit any documents that show James Watts, 82, president and owner of Hawkeye Waste, applied for insurance or has proof of insurance. McKeever said if there are such documents he will consider them for his ruling on the injunction.

James Watts; Chris Watts, 30, general manager of Hawkeye Waste; Mary Sheen, 59; and Chris Dohrer, 43, a contract laborer; each were charged with failure to maintain workers’ compensation insurance, a Class D felony. All have pleaded not guilty. No trial dates are set at this time.

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