Iowa to pay $4.15 million to end agency harassment case

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DES MOINES, Iowa (AP) - The state of Iowa will pay $4.15 million to two executive branch employees who were sexually harassed for years by an agency director who had been a longtime friend of Gov. Kim Reynolds.

The money will go to former Iowa Finance Authority business development director Beth Mahaffey and its current communications director, Ashley Jared.

The state appeal board voted 2-1 to approve the deals Monday afternoon. State Auditor Rob Sand dissented, saying Jamison and not taxpayers should be required to pay.

Both women came forward last year to the governor's office to detail the sexual harassment and hostile work environment they endured under Iowa Finance Authority executive director Dave Jamison.

The state will pay $2.35 million in cash and monthly annuities to Mahaffey, 53, who left state employment and moved last year after complaining about Jamison's behavior. Another $1.8 million will go to Iowa Finance Authority communications director Ashley Jared, 35.