Four plant employees are plaintiffs in the case and their attorneys are seeking to represent a class of 1,750 employees at the plant, which produces lunchmeats made of pork, beef and poultry.
Oscar Mayer's parent company, Kraft Foods Global, Inc., is named in the lawsuit, which it promised to fight.
"We believe we are in full compliance with federal and Iowa law and plan to vigorously defend the suit," said spokeswoman Rachel Larsen in a statement.
This filing comes in the aftermath of a similar case involving approximately 780 employees at an Oscar Mayer meat-processing plant in Madison, Wis.. Those employees stand to receive millions in back pay if they win their lawsuit.
According to Lawyers for the workers, they are likely to be awarded more than $4 million under a settlement agreement reached last year. The settlement allowed Kraft to get out of the payment if the company was successful in convincing judges the employees were not entitled to compensation under state or federal law.
However, in August a federal appeals court in Chicago ruled in favor of the workers, saying they are entitled to be paid for that time under Wisconsin law in what judges called the first appellate ruling of its kind.
Last month Kraft’s lawyers asked the US Supreme Court to take the case; however, justices have not decided whether to do so. The company and a labor union had argued they reached a compromise not to pay employees for equipment time in a collective bargaining agreement.
Meanwhile, Iowa’s lawsuit states employees are required to put on equipment in a locker room, but do not get paid until they swipe their timecards when they arrive at their workstations. They then are required to punch out at the end of their shifts before walking to the locker room to take off the equipment.
The lawsuit claims the company's practice violates the Fair Labor Standards Act and asks a judge to order Kraft to start paying employees for that time. The employees are seeking their total back wages and overtime they say they are owed, plus additional damages and attorneys fees.
The lawsuit says Kraft has not kept records indicating how much time employees have spent donning and doffing equipment, but the practice goes back at least three years.