At-a-Glance Compliance Overview

State Mini-FCRA Laws

Iowa does not maintain a consumer reporting statute comparable to the “mini-FCRA” laws adopted in states such as California, Massachusetts, or Colorado.

Employment background checks obtained from consumer reporting agencies are governed primarily by the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers using third-party background screening providers must comply with federal requirements, including:

• providing a clear written disclosure before obtaining a consumer report
• obtaining written authorization from the applicant or employee
• providing pre-adverse action and adverse action notices when information in a consumer report influences an employment decision.

Criminal Record Reporting Rules

Iowa does not impose state-specific reporting limits on criminal convictions in employment background checks.

Convictions

Criminal convictions may generally be reported without time limitation under FCRA §605(a)(5).

Non-Convictions

Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests or other adverse non-conviction information that is more than seven years old, subject to federal salary threshold exceptions.

Record Sealing / Expungement

Iowa provides mechanisms for expungement of certain criminal records.

Relevant statutes include:

Iowa Code §901C.2 – Expungement of certain non-convictions
Iowa Code §901C.3 – Expungement of certain misdemeanor convictions

Eligible individuals may petition to expunge:

• certain dismissed charges and non-convictions
• certain misdemeanor convictions under specific conditions.

Expunged records are removed from public access and generally will not appear in routine employment background checks.

Fair Chance / Ban-the-Box Law

Iowa has not adopted a statewide ban-the-box law affecting private employers.

Private employers may inquire about criminal history during the hiring process, including on initial job applications.

Credit Check Restrictions

Iowa does not restrict employer use of credit reports for employment purposes.

Employers may obtain credit reports if they comply with the Fair Credit Reporting Act, including:

• disclosure
• authorization
• pre-adverse action notice
• adverse action procedures.

Cannabis Use and Drug Testing Rules

Iowa permits medical marijuana use in limited circumstances, but does not require employers to accommodate marijuana use.

Employers may:

• maintain drug-free workplace policies
• prohibit marijuana use during work hours
• discipline employees for positive drug tests or workplace impairment.

Pay Equity and Salary History Rules

Iowa does not maintain a statewide salary history ban or pay transparency law affecting private employers.

Employers must comply with federal anti-discrimination laws governing compensation.

Local Fair Chance or Screening Ordinances

Des Moines – Fair Chance Hiring Ordinance

Des Moines has enacted a fair chance hiring ordinance that applies to private employers within the city.

Key requirements include:

• employers may not inquire about criminal history until after a conditional offer of employment or once the applicant is otherwise qualified
• employers must evaluate criminal history based on job-related factors
• adverse decisions must be supported by job-related considerations.

Waterloo – Fair Chance Hiring Ordinance

Waterloo has enacted a fair chance hiring ordinance affecting private employers within the city.

Key requirements include:

• criminal history inquiry permitted only after a conditional offer of employment
• employers must evaluate criminal history using job-related criteria
• adverse decisions must be based on the relationship between the offense and the position.

Key Statutes

• Expungement (Non-Convictions) – Iowa Code §901C.2
• Expungement (Misdemeanors) – Iowa Code §901C.3

Employer Compliance Checklist

Employers conducting background checks in Iowa should implement several compliance practices.

Follow federal Fair Credit Reporting Act disclosure, authorization, and adverse action requirements when ordering background checks.

Confirm whether hiring activities occur in Des Moines or Waterloo and apply local requirements accordingly.

Delay criminal history inquiries as required by local ordinances.

Evaluate criminal history using job-related criteria in covered jurisdictions.

Ensure expunged records are not considered in employment decisions.

Apply criminal history screening policies consistently to reduce discrimination risks.

Maintain clear workplace drug testing policies addressing marijuana use and workplace impairment.