Johnson County has taken legal action against Hawkeye Waste Systems and its affiliated companies by filing an injunction to halt all business operations within the county. The move comes after it was discovered that the companies lacked workers’ compensation insurance, a violation that came to light following a fatal workplace accident in October 2024.
The injunction, filed by Johnson County Attorney Rachel Zimmermann Smith, requests that the court grant both a temporary and permanent injunction against the defendants. The temporary injunction aims to immediately stop the companies from conducting business in the county, while the permanent injunction seeks to prevent them from operating or employing workers in Johnson County in the future.
The lack of workers’ compensation insurance was revealed after an employee, Matthew Reuwsaat, 61, was crushed by a skid loader on October 31, 2024. Reuwsaat later succumbed to his injuries on November 9, 2024, at the University of Iowa Health Care Medical Center in Iowa City. An investigation by the Occupational Safety and Health Administration (OSHA) and the Iowa Division of Workers’ Compensation found that Hawkeye Waste Systems did not have the required insurance coverage.
As a result, James Watts, 82, president and owner of Hawkeye Waste; Chris Watts, 30; Mary Sheen, 59; and Chris Dohrer, 43, were charged with failure to maintain workers’ compensation insurance, a Class D felony. The investigation also revealed that Hawkeye’s affiliated companies, Watts Trucking Service, Inc., and J.L. Watts Company, are interconnected with Hawkeye Waste Systems.
According to the injunction motion, Watts Trucking is believed to be the primary business operating or managing behind several entities and may be providing funding or financing for other businesses, including Hawkeye Waste. J.L. Watts Company owns the real estate where Hawkeye Waste operates. The individuals behind these businesses also operate similar businesses in nearby counties in Eastern Iowa, where workers have been injured without being covered by workers’ compensation.
James Watts, in an affidavit, clarified the roles of those charged and named in the injunction. He stated that he is the sole owner and decision-maker of Watts Trucking and Hawkeye Waste Systems. Watts claimed that Chris Watts, the general manager of Hawkeye Waste; Mary Sheen, the office manager and controller of Watts Trucking; and Chris Dohrer, a contract laborer, should not be charged as they lack financial responsibility and decision-making authority.
The criminal case against the individuals is ongoing, with James Watts and Sheen having pleaded not guilty. Chris Watts and Dohrer are scheduled for arraignment on May 29. A hearing on the injunction is set for July 16 in Johnson County District Court.
