Henry County Supervisors approve $20,000 settlement

MT. PLEASANT — The Henry County Board of Supervisors approved a $20,000 settlement agreement with former jailer Laycie Kelly during its May 15 meeting, resolving complaints Kelly filed with state and federal civil rights agencies.

The approval, made without discussion during the public meeting, followed a recommendation from outside legal counsel.

“We have a motion for settlement,” Supervisor Marc Lindeen said. “I'll read this verbatim, motion to approve settlement of claims filed in EEOC #26A-2025-000463 and CP # 03-25-83451 in the amount of $20,000.00 upon recommendation by outside legal counsel, and to avoid the time and cost to the public that litigation would bring.”

The motion passed unanimously without any additional information revealed.

The Southeast Iowa Union obtained the motion and settlement agreement through a public records request. Additional records requested on May 16 had not been released as of publication.

According to the “Agreement and Release” document, Kelly filed complaints with the Iowa Office of Civil Rights and the U.S. Equal Employment Opportunity Commission alleging workplace grievances against Henry County. Though the specific allegations have not been publicly disclosed, the county denied any liability.

The settlement outlines that Kelly received:

$2,000 as wages, subject to payroll taxes,

$11,324.95 for emotional distress damages,

$6,675.05 in attorney’s fees paid directly to the Hasso & Wilson Law Firm.

The agreement also includes Kelly’s resignation, effective May 15, and a commitment that she will not seek future employment with the county. The county, in turn, agreed to pay out Kelly’s accrued vacation and compensatory time in the next regular pay period.

“Kelly acknowledges that she has no reinstatement or rehire rights with Employer, and she agrees that she will not apply for employment with Employer at any time in the future,” the document reads, emphasizing that this provision is “not retaliatory.”

The agreement requires Kelly to withdraw her civil rights complaints and waive any right to recover damages in future proceedings arising from the same allegations. However, she retains the right to report possible violations to agencies such as the EEOC or Iowa Civil Rights Commission, and to participate in investigations or proceedings — though she has waived the right to recover any damages or benefits from such actions.

Neither the county nor Kelly has commented publicly on the nature of the complaints. The county has not disclosed whether a nondisclosure agreement is in place or if any disciplinary actions preceded the settlement.

The Southeast Iowa Union will continue to seek records and report as more information becomes available.

Comments: AnnaMarie.Kruse@southeastiowaunion.com