SF 155 (LSB 1602XS (2) 91)

SENATE FILE 155

BY  BISIGNANO

A BILL FOR

An Act prohibiting employers and employment agencies from seeking the criminal record or criminal history from applicants for employment under certain circumstances, establishing a criminal history employment application task force, providing penalties, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
PROHIBITED HIRING PRACTICES —— CRIMINAL RECORD OR CRIMINAL HISTORY

    Section 1.  Section 10A.202, subsection 2, Code 2025, is amended to read as follows:
   2.  The department is responsible for the administration of the laws of this state under chapters 88A, 88B, 89, 89A, 90A, 91A, 91C, 91D, 91E, 91F, and 92, and such other labor-services duties assigned to the department or director.
    Sec. 2.  Section 10A.204, subsection 3, Code 2025, is amended to read as follows:
   3.  The director, in consultation with the labor commissioner, shall, at the time provided by law, make an annual report to the governor setting forth in appropriate form the business and expense of the division and department under this subchapter for the preceding year, the number of remedial actions taken under chapter 89A, the number of disputes or violations processed by the division or department and the disposition of the disputes or violations, and other matters pertaining to the division or department under this subchapter which that are of public interest, together with recommendations for change or amendment of the laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B, 90A, 91A, 91C, 91D, 91E, 91F, and 92, and sections 85.67A and 85.68, and the recommendations, if any, shall be transmitted by the governor to the first general assembly in session after the report is filed.
    Sec. 3.  NEW SECTION.  91F.1  Declarations and purpose.
   1.  The general assembly declares that:
   a.  Removing obstacles to employment for individuals with criminal records provides economic and social opportunities to a large group of individuals in Iowa and increases the productivity, health, and safety of Iowa communities.
   b.  Employment advertisements in Iowa frequently include language regarding criminal records that is unrelated to the employment vacancy and that either explicitly precludes or strongly dissuades individuals from applying for employment for which they are otherwise qualified.
   c.  Individuals with criminal records represent a group of job seekers ready and able to enlarge and contribute to the workforce.
   d.  Securing employment significantly reduces the risk of recidivism for individuals with criminal records.
   e.  The opportunity for individuals with criminal records to secure employment or to pursue, practice, or engage in a meaningful and profitable trade, occupation, vocation, profession, or business is essential to rehabilitation and their resumption of the responsibilities of citizenship.
   2.  It is the purpose of this chapter to improve the economic viability, health, and security of Iowa communities and to assist individuals with criminal records to reintegrate into the community, become productive members of the workforce, and provide for their families and themselves.
    Sec. 4.  NEW SECTION.  91F.2  Definitions.
   1.  “Applicant” means a person pursuing employment with an employer or with or through an employment agency.
   2.  “Criminal record or criminal history” means information collected or possessed by any criminal justice agency or judicial system in this state or in another jurisdiction, including a federal, military, tribal, or foreign jurisdiction, concerning individuals which information includes identifiable descriptions and notations of arrests, detentions, indictments, or other formal criminal charges, and any disposition arising therefrom, including acquittal, deferred judgment, sentencing, correctional supervision, release, or conviction, and any sentence arising from a verdict or plea of guilty or nolo contendere, including a sentence of incarceration, a suspended sentence, a sentence of probation, or a sentence of conditional discharge.
   3.  “Director” means the director of the department of inspections, appeals, and licensing. 
   4.  “Employer” means a person who has four or more employees in the current or preceding calendar year and includes an agent of such a person. For purposes of this chapter, individuals who are members of the employer’s family shall not be counted as employees.
   5.  “Employment agency” means a person who, with or without compensation, regularly brings together those desiring to employ and those desiring employment and includes an agent of such a person.
    Sec. 5.  NEW SECTION.  91F.3  Prohibited hiring practices —— exceptions.
   1.  An employer or employment agency shall not inquire about or require disclosure of the criminal record or criminal history of an applicant until the applicant’s interview is being conducted or, if an interview will not be conducted, until after a conditional offer of employment is made to the applicant by the employer or employment agency.
   2.  Subsection 1 does not apply to the following positions if an employer or employment agency establishes a separate application form for such positions that includes the title and job description of the position, the specific state or federal law or bonding requirement that applies to the position, and the types of criminal offenses that would preclude an applicant from being hired for the position:
   a.  Positions for which employers are required to exclude applicants with certain criminal convictions from employment due to federal or state law.
   b.  Positions for which a fidelity bond or an equivalent bond is required and an applicant’s conviction of one or more specified criminal offenses would disqualify the applicant from obtaining such bond, in which case an employer may include a question or otherwise inquire whether the applicant has ever been convicted of such specified criminal offenses.
   3.  Subsection 1 does not prohibit an employer or employment agency from notifying applicants in writing of specific offenses that will disqualify an applicant from employment in a particular position as permitted by subsection 2.
   4.  Subsection 1 does not apply to the following positions:
   a.  Positions for which an employee will work within the residence of the employer if the employer or members of the employer’s family reside therein during such employment.
   b.  Positions for which an employee will have entry access to a personal residence or an occupied unit in a multiple housing structure.
   c.  Positions for which an employee will render personal service to the person of the employer or members of the employer’s family.
   5.  An employment agency shall not be liable for a violation of subsection 1 if the employment agency can demonstrate by clear and convincing evidence that such violation was caused by the employment agency’s good-faith reliance on an affirmative representation by an employer that one of the exceptions listed in subsection 2 or 4 applied to the position in question. The employer shall be liable for any such violations.
    Sec. 6.  NEW SECTION.  91F.4  Powers and duties of the director.
   1.  The director may hold hearings and investigate alleged violations of this chapter by an employer or employment agency.
   2.  The director may assess and recover civil penalties in accordance with sections 91F.5 and 91F.6.
   3.  The director shall adopt rules pursuant to chapter 17A to administer this chapter.
    Sec. 7.  NEW SECTION.  91F.5  Civil penalties —— amount.
   An employer or employment agency who violates the provisions of this chapter shall be subject to a penalty as follows:
   1.  For a first violation, the director shall issue a written warning to the employer or employment agency that includes notice regarding penalties for subsequent violations and the employer or employment agency shall have thirty days to remedy the violation.
   2.  For a second violation, or if a previous violation is not remedied within thirty days of notice by the director, the director may impose a civil penalty of up to five hundred dollars.
   3.  For a third violation, or if a previous violation is not remedied within sixty days of notice by the director, the director may impose a civil penalty of up to one thousand five hundred dollars.
   4.  For subsequent violations, or if a previous violation is not remedied within ninety days of notice by the director, the director may impose a civil penalty of up to one thousand five hundred dollars for every thirty days that pass thereafter without compliance.
    Sec. 8.  NEW SECTION.  91F.6  Civil penalties —— recovery.
   1.  The director may propose that an employer be assessed a civil penalty as provided in section 91F.4 by serving the employer with notice of such proposal in the same manner as an original notice is served under the rules of civil procedure. Upon service of such notice, the proposed assessment shall be treated as a contested case under chapter 17A. However, an employer or employment agency must request a hearing within thirty days of being served.
   2.  If an employer or employment agency does not request a hearing pursuant to subsection 1 or if the director determines, after an appropriate hearing, that an employer or employment agency is in violation of this chapter, the director shall assess a civil penalty in accordance with section 91F.5.
   3.  An employer or employment agency may seek judicial review of any assessment made under subsection 2 by instituting proceedings for judicial review pursuant to chapter 17A.  However, such proceedings must be instituted in the district court of the county in which the violation or one of the violations occurred and within thirty days of the day on which the employer was notified that an assessment has been made.
   4.  After the time for seeking judicial review has expired or after all judicial review has been exhausted and the director’s assessment has been upheld, the director shall request the attorney general to recover the assessed penalties in a civil action.
   5.  Civil penalties recovered pursuant to this section shall be remitted by the director to the treasurer of state for deposit in the general fund of the state.
    Sec. 9.  NEW SECTION.  91F.7  Construction.
   This chapter shall not be construed to require an employer to employ an individual with a criminal record.
    Sec. 10.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2026.
DIVISION II
CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE

    Sec. 11.  CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE AND REPORT.
   1.  A criminal history employment application task force is created. The task force shall consist of the following members:
   a.  The director of the department of inspections, appeals, and licensing or the director’s designee, who shall represent public sector employers.
   b.  Two representatives of established civil rights and civil liberties organizations appointed by the director.
   c.  Two representatives of private sector employers appointed by the director.
   d.  One representative of a private sector labor organization appointed by the director.
   e.  One representative of a statewide public sector labor organization appointed by the director.
   2.  The task force shall study appropriate voluntary standards and procedures for evaluating employment applications from an individual with a criminal history, including but not limited to the nature of the crime, the age at which the crime was committed, the nature of the duties of the position applied for, and relevant evidence of the individual’s rehabilitation.
   3.  The department of inspections, appeals, and licensing shall provide staffing services for the task force. The director or the director’s designee shall serve as the chairperson of the task force.
   4.  The members of the task force shall serve without compensation and shall not be reimbursed for their expenses.
   5.  The task force shall submit a report regarding its findings and recommendations to the governor and the general assembly no later than January 1, 2026. The report shall include a model pamphlet or other publication in both printed and electronic form on evaluating employment applications from individuals with criminal histories to be distributed to employers in Iowa in a manner similar to other information distributed by the director.
    Sec. 12.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   DIVISION I —— PROHIBITED HIRING PRACTICES —— CRIMINAL RECORD OR CRIMINAL HISTORY. Division I of this bill prohibits an employer or employment agency from inquiring about or requiring disclosure of the criminal record or criminal history of an applicant until the applicant’s interview is being conducted. If an interview for the position will not be conducted, the prohibition applies until after a conditional offer of employment is made to the applicant by the employer or employment agency.
   The prohibition does not apply to certain positions listed in the division if an employer or employment agency establishes a separate application form for such positions that includes certain information listed in the division. The division does not prohibit an employer or employment agency from notifying applicants in writing of specific offenses that will disqualify an applicant from employment in a particular position as permitted by these exceptions.
   The prohibition does not apply to certain additional positions listed in the division.
   An employment agency shall not be liable for a violation of the prohibition if the employment agency can demonstrate by clear and convincing evidence that such violation was caused by the employment agency’s good-faith reliance on an affirmative representation by an employer that one of the exceptions listed in the bill applied to the position in question. The employer shall be liable for any such violations.
   The division defines “applicant” as a person pursuing employment with an employer or with or through an employment agency. The division defines “employer” as a person who has four or more employees in the current or preceding calendar year and an agent of such a person, excluding family members. The division defines “employment agency” as a person who, with or without compensation, regularly brings together those desiring to employ and those desiring employment and an agent of such a person.
   The division defines “criminal record or criminal history” as information collected or possessed by any criminal justice agency or judicial system in this state or in another jurisdiction, including a federal, military, tribal, or foreign jurisdiction, concerning individuals which information includes identifiable descriptions and notations of arrests, detentions, indictments, or other formal criminal charges, and any disposition arising therefrom, including acquittal, deferred judgment, sentencing, correctional supervision, release, or conviction, and any sentence arising from a verdict or plea of guilty or nolo contendere, including a sentence of incarceration, a suspended sentence, a sentence of probation, or a sentence of conditional discharge.
   An employer or employment agency that violates the provisions of the division is subject to civil penalties ranging from a written warning for a first violation to up to $1,500 every 30 days for a fourth or subsequent violation not remedied within 90 days.
   The director of the department of inspections, appeals, and licensing may hold hearings and investigate alleged violations of the division by an employer or employment agency, may assess and recover civil penalties and seek assistance from the attorney general in such recovery, and shall adopt rules to administer the division.
   The division shall not be construed to require an employer to employ an individual with a criminal record.
   The division takes effect January 1, 2026.
   DIVISION II —— CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE. Division II of the bill creates a criminal history employment application task force. The task force shall study appropriate voluntary standards and procedures for evaluating employment applications from an individual with a criminal history, including but not limited to the nature of the crime, the age at which the crime was committed, the nature of the duties of the position applied for, and relevant evidence of the individual’s rehabilitation.
   The division lists the membership of the task force. The director shall be the chairperson of the task force and the labor services division of the department of workforce development shall provide staffing services for the task force.
   The task force shall submit a report regarding its findings and recommendations to the governor and the general assembly no later than January 1, 2026. The report shall include a model pamphlet or other publication in both printed and electronic form on evaluating employment applications from individuals with criminal histories to be distributed to employers in Iowa in a manner similar to other information distributed by the director.
   The division takes effect upon enactment.