Iowa background check laws for employers

At a glance

The Iowa rules on each topic, in one line. Federal law applies to every topic.

What a background check report may include

Who it covers: Requesters of Iowa DCI criminal history data (private employers included)

No state limit on consumer report content beyond the federal FCRA. The state repository (Department of Public Safety, Division of Criminal Investigation) will not release an arrest with no disposition after 18 months, or a record after a completed deferred judgment, except to justice agencies, the subject, or a requester with the subject’s signed release. Every release must state that an arrest without disposition is not an indication of guilt. Expunged misdemeanor convictions are removed from the state criminal history files. A qualified entity that provides care to children, the elderly, or people with disabilities may request a fingerprint-based FBI check on covered staff and volunteers through the DCI (Iowa Code 692C.1).

Exceptions

• Criminal or juvenile justice agencies
• Requests with the subject’s signed release

Iowa Code 692.2(1)(b)(3) · Iowa Code 692.2(1)(b)(5) · Iowa Code 901C.3(5) · Iowa Code 692C.1(2)

Sealed and expunged records

Who it covers: All (court records become confidential; no employer-facing rule)

In force since: July 1, 2019

No automatic sealing of convictions. Three court-driven routes: (1) dismissed or acquitted cases are expunged on application (or the court’s own motion) once costs are paid and 180 days have passed; (2) one misdemeanor case per lifetime may be expunged after 8 years with no pending charges and costs paid, excluding listed offenses (OWI, sex offenses, assault, harassment, and others); (3) a deferred judgment and its dismissed related charges are expunged on discharge from probation once financial obligations are paid. Expunged records are confidential and exempt from public access. The statutes say nothing about what an employer may ask.

Exceptions

• 901C.3(2) lists misdemeanors that cannot be expunged, including OWI (321J.2), sex offenses (692A.101), assault (708.2(3)), domestic abuse assault (708.2A), harassment, stalking, and chapters 719, 720, 724, 726, 728, 901A

Iowa Code 901C.2(1)(a)(3) · Iowa Code 901C.3(1)(a) · Iowa Code 901C.3(3) · Iowa Code 907.9(4)(b)

Cannabis use and testing

Who it covers: All employers (defined as a person who employs for wages in Iowa)

No off-duty use protection and no limit on THC testing. Iowa has only a medical cannabidiol program, and that chapter says it does not require an employer to permit or accommodate marijuana in the workplace, and does not bar policies restricting employee use for workplace health and safety. Adult use is not legal.

Iowa Code 124E.21(1) · Iowa Code 124E.21(2)

Drug and alcohol testing procedures

Who it covers: Private employers in Iowa that choose to test (the section creates no duty to test)

In force since: July 1, 2025

Iowa Code 730.5 governs private-employer drug and alcohol testing in detail. Testing may be a condition of hiring or continued employment, but only under a written policy given to every employee subject to testing and available to applicants. The statute sets collection, chain-of-custody, split-sample, laboratory, and medical-review-officer rules; notice of a confirmed positive with the right to a second confirmatory test at the employee’s chosen approved lab within 7 days; uniform disciplinary rules; a rehabilitation offer for a first alcohol positive; confidentiality; and civil remedies. Since July 1, 2025 (HF 767): the employer designates which positions are safety-sensitive for random pools, notices may be delivered in person or electronically instead of certified mail if the employee chooses, and the employee bears the burden of proving a violation directly caused the damages claimed.

Exceptions

• Tests required by federal statute, regulation, or order (e.g., DOT); such employees may also be excluded from random pools

Iowa Code 730.5(4) · Iowa Code 730.5(9)(a)(1) · Iowa Code 730.5(2) · 2025 Iowa Acts, HF 767, Sec. 1 (730.5(1)(j)) · 2025 Iowa Acts, HF 767, Sec. 4 (730.5(15)(b)) · 2025 Iowa Acts, HF 767, Sec. 2 (730.5(7)(j)(1)) · Iowa enrolled bills, 91st GA session 1: HF 767

The state consumer reporting law

Who it covers: N/a

No state consumer-reporting statute beyond the federal FCRA. Iowa Code 714G is a security-freeze chapter for credit-eligibility reports only. One adjacent rule: Iowa Code 80A requires a license to run a ‘private investigation business’ located in Iowa, defined to include investigating a person’s conduct, reputation, or character for hire; the exemption in 80A.2(5) covers only firms engaged exclusively in credit and financial-standing information. A background-screening firm based in Iowa should check whether it needs an 80A license.

Iowa Code 714G.1(2) · Iowa Code 80A.1(9)(b) · Iowa Code 80A.2(5) · Iowa Code 80A.3(1)

Where federal law alone applies

We found no Iowa rule for private employers on these topics. The FCRA and other federal laws still apply.

• Criminal history questions
• Credit checks
• Salary history

Local rules

Some places in Iowa add their own rules. A local rule applies on top of the state rule.

• Waterloo (city). Fair Chance ordinance, Code sec. 5-3-15: no criminal-record question on any application (employers of 4+ in Waterloo, per the section’s employer definition); employers of 15+ may not ask about or require disclosure of convictions, arrests, or pending charges until a conditional offer. The Iowa Supreme Court (Case No. 20-0575, 2021) struck the adverse-decision limits. The section remains in the current code (2026 S-9) with a publisher’s note on the ruling, and no repeal is pending codification. On the statute text, Iowa Code 216.19(1) as amended by HF 2800 bars enforcement from July 1, 2026. Waterloo Code of Ordinances sec. 5-3-15 (Ord. 5522, 2019; am. Ord. 5547, 2020)
• Des Moines (city). Municipal Code sec. 62-71.1 (Ord. 16,083, 2021): no criminal-record inquiry on any application; no inquiry about convictions, arrests, or pending charges during the application process (including interviews) until a conditional offer; private K-12 schools exempt from the process rule; employers must still meet federal and state background-check and adverse-action duties. Still in the current Municode version (Oct 2, 2026). On the statute text, Iowa Code 216.19(1) as amended by HF 2800 bars enforcement from July 1, 2026; no court ruling or city repeal found. Des Moines Municipal Code sec. 62-71.1 and 62-72 (Ord. No. 16,083)

Adverse action notices

Before you reject or act against someone because of a background check report, the FCRA requires a pre-adverse action notice, a wait, and then a final notice. The adverse action letter generator writes both notices and adds the Iowa requirements where they apply.

The waiting period calculator gives the date under the federal rule.

Paperwork at hire

Besides the federal Form I-9 and W-4, Iowa sets these for each new hire.

• State withholding. Have each new hire complete the 2026 IA W-4 and keep it on file; the federal W-4 does not replace it for Iowa withholding. Form IA W-4 (44-019)
• New hire report. Report each new hire to Iowa within 15 days; some independent contractors must be reported too. State new hire reporting
• Notices at hire. Iowa adds none beyond the federal forms that every employer gives.

Build the new hire checklist for Iowa, with city rules, special cases and a due date for each item.

Sources

• Iowa Code 692.2(1)(b)(3)
• Iowa Code 901C.3(5)
• Iowa Code 692C.1(2)
• Iowa Code 901C.2(1)(a)(3)
• Iowa Code 907.9(4)(b)
• Iowa Code 124E.21(1)
• Iowa Code 730.5(4)
• 2025 Iowa Acts, HF 767, Sec. 1 (730.5(1)(j))
• Iowa enrolled bills, 91st GA session 1: HF 767
• Iowa Code 714G.1(2)
• Iowa Code 80A.1(9)(b)
• Iowa Code 80A.2(5)
• Waterloo Code of Ordinances sec. 5-3-15 (Ord. 5522, 2019; am. Ord. 5547, 2020)
• Des Moines Municipal Code sec. 62-71.1 and 62-72 (Ord. No. 16,083)

Last reviewed October 20, 2026 · General information, not legal advice.

After the hire

Once a background check clears, payroll and onboarding come next. Rippling (paid link) runs payroll, benefits and onboarding from one employee record.