Price of discrimination, business influence

Just as damning as our former governor’s pattern of discrimination is the defense he offered, that he targeted the workers’ compensation commissioner because business interests told him he had to go.

When Terry Branstad returned to the Governor’s Office in 2011, one of his first acts was to ask for the resignation of Iowa Workers’ Compensation Commissioner Chris Godfrey, who is openly gay. When Godfrey declined to resign, Branstad slashed his salary to $73,250 — a pay cut of nearly $40,000, which left Godfrey earning the statutory minimum for the job.

In 2012, Godfrey sued, claiming that Branstad had discriminated against him based on his sexual orientation. On July 15, a Polk County jury agreed — awarding Godfrey $1.5 million in damages.[1] At trial, Branstad claimed he had “always treated everyone, gay or straight, with respect and dignity,” but the jury determined the evidence pointed strongly in the other direction — and now Iowa taxpayers are paying the price.

Just as damning as our former governor’s pattern of discrimination is the defense he offered at trial, and in his pre-trial deposition.[2] By his account, Branstad took aim at Godfrey not because his workers’ compensation commissioner was gay, but because the Iowa business community — and especially meatpacking interests — told him that Godfrey had to go.

So, we have a jury calling out discrimination at the highest level of Iowa government, and effectively an admission from the former governor that the business lobby was calling the shots on a critical issue.

In his November 2014 deposition, Branstad details meetings in 2010 with Eldin and Regina Roth of Beef Products Inc (BPI) who “said they were concerned about the direction that the workers’ comp commission is going in Iowa, that it was driving up the costs of their businesses.” In July 2011, Branstad solicited a long memo from Tyson Foods[3] that offered the Governor a blow-by-blow account of “the negative impact [Godfrey’s] decisions have on Iowa Employers.”

When Branstad took office in 2011, his treatment of Godfrey was callous, petty and discriminatory. When Republicans achieved “trifecta” control of the Statehouse in 2017, the target shifted from the commissioner to the entire workers’ compensation system. At stake here was not just Godfrey’s job but — as we detailed in our report last year on the recent changes to Iowa’s workers’ compensation system[4]a fundamental shift in responsibility and risk for workplace injuries.

[1] Stephen Gruber-Miller, The Des Moines Register, July 15, 2019. https://www.desmoinesregister.com/story/news/politics/2019/07/15/terry-branstad-gay-official-discrimination-chris-godfrey-workers-compensation-commissioner-verdict/1714302001/

[2] https://www.documentcloud.org/documents/2644880-Gov-Terry-Branstad-deposition.html

[3] https://www.documentcloud.org/documents/2644850-Tyson-Foods-Talking-Points-for-Gov-Terry-Branstad.html
[4] Emily Schott, Matthew Glasson and Colin Gordon, The Iowa Policy Project, “Giving Workers the Cold Shoulder: Shifting the Risk Under Iowa’s Workers’ Compensation Law.” http://www.iowapolicyproject.org/2018docs/180920-workers_comp.pdf

Colin Gordon is senior research consultant for the nonpartisan Iowa Policy Project (IPP). A professor of history at the University of Iowa, he is the author of IPP’s long-running State of Working Iowa analysis. Contact: cgordonipp@gmail.com