It was either resign or be fired from a retail store in NW IOWA. I was the manager, two owners, who wanted different things. Tried to find middle ground lost the confidence of both. The real problem is this; I believe one or both showed my personel file to my wife and her sister , and don`t know how many others. We are in the process of divorce. Her sister is friends with one of the owners, The agreement between the owners and I was; I left for personal reasons, nothing else would be said, guarantees were voiced all around. Do I have grounds for a suit? I have also talked with different members of her family and some knew a lot more than they should have and they heard it from someone who was not even in the family. Angry as hell, just not sure what to do.

Not that I can see. It may have been poor management, but nothing in your post indicates that anything illegal occurred.

The only information an employer may have that must be kept confidential by law is medical information your employer obtained through their health insurance plan. While the vast majority of employers treat personnel files and other employee records as confidential, that is a matter of company policy, not the law.