Iowa Legislative Updates for Midyear 2025: Effective July 1- HR ALERTS

Iowa Legislative Updates for Midyear 2025

Effective: July 1, 2025

Several new employment-related laws took effect in Iowa on July 1, 2025. Here’s a quick summary to keep you informed:

Independent Contractor Status for Motor Carriers

Motor carrier safety improvements will not be considered when determining whether a worker is an employee, an independent contractor, or a jointly employed worker under any Iowa law.

Reference: 2025 IA S.B. 377  

Distracted Driving Law Expanded

Iowa has strengthened its distracted driving law. Drivers are now prohibited from using an electronic device for any reason while driving — not just for texting. The law also:

• Broadens who is exempt, including people reporting emergencies.

• Allows use of an electronic device if the vehicle is at a complete stop, even if it cannot be fully removed from the traveled portion of the road.

Reference: 2025 IA S.B. 22  

Equal Treatment for Adoptive Parents

Employers must now treat adoptive parents the same as biological parents for all employment policies, benefits, and protections — including parental and family leave.

Reference: 2025 IA H.B. 248  

Drug Testing Notice Requirements Amended

Employers may now provide notice of a confirmed positive drug test result (and related required notices) by:

• In-person exchange of written materials, or

• Electronic notification, in addition to certified mail. This applies to employees, applicants, and the parents of minors.

Reference: Iowa Code 730.5  

Gender Identity Removed as a Protected Characteristic

The Iowa Civil Rights Act no longer includes gender identity as a protected characteristic under state law. Discrimination or harassment based on gender identity is no longer expressly prohibited under Iowa state law.

Reference: 2025 IA S.B. 418  

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