Senate File 155 - Introduced SENATE FILE 155 BY BISIGNANO A BILL FOR An Act prohibiting employers and employment agencies from 1 seeking the criminal record or criminal history from 2 applicants for employment under certain circumstances, 3 establishing a criminal history employment application task 4 force, providing penalties, and including effective date 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1602XS (2) 91 je/js
S.F. 155 DIVISION I 1 PROHIBITED HIRING PRACTICES CRIMINAL RECORD OR CRIMINAL 2 HISTORY 3 Section 1. Section 10A.202, subsection 2, Code 2025, is 4 amended to read as follows: 5 2. The department is responsible for the administration of 6 the laws of this state under chapters 88A , 88B , 89 , 89A , 90A , 7 91A , 91C , 91D , 91E , 91F, and 92 , and such other labor-services 8 duties assigned to the department or director. 9 Sec. 2. Section 10A.204, subsection 3, Code 2025, is amended 10 to read as follows: 11 3. The director, in consultation with the labor 12 commissioner, shall, at the time provided by law, make an 13 annual report to the governor setting forth in appropriate 14 form the business and expense of the division and department 15 under this subchapter for the preceding year, the number 16 of remedial actions taken under chapter 89A , the number of 17 disputes or violations processed by the division or department 18 and the disposition of the disputes or violations, and other 19 matters pertaining to the division or department under this 20 subchapter which that are of public interest, together with 21 recommendations for change or amendment of the laws in this 22 chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 90A , 91A , 91C , 23 91D , 91E , 91F, and 92 , and sections 85.67A and 85.68 , and the 24 recommendations, if any, shall be transmitted by the governor 25 to the first general assembly in session after the report is 26 filed. 27 Sec. 3. NEW SECTION . 91F.1 Declarations and purpose. 28 1. The general assembly declares that: 29 a. Removing obstacles to employment for individuals with 30 criminal records provides economic and social opportunities 31 to a large group of individuals in Iowa and increases the 32 productivity, health, and safety of Iowa communities. 33 b. Employment advertisements in Iowa frequently include 34 language regarding criminal records that is unrelated to the 35 -1- LSB 1602XS (2) 91 je/js 1/ 9
S.F. 155 employment vacancy and that either explicitly precludes or 1 strongly dissuades individuals from applying for employment for 2 which they are otherwise qualified. 3 c. Individuals with criminal records represent a group of 4 job seekers ready and able to enlarge and contribute to the 5 workforce. 6 d. Securing employment significantly reduces the risk of 7 recidivism for individuals with criminal records. 8 e. The opportunity for individuals with criminal records 9 to secure employment or to pursue, practice, or engage in 10 a meaningful and profitable trade, occupation, vocation, 11 profession, or business is essential to rehabilitation and 12 their resumption of the responsibilities of citizenship. 13 2. It is the purpose of this chapter to improve the economic 14 viability, health, and security of Iowa communities and to 15 assist individuals with criminal records to reintegrate into 16 the community, become productive members of the workforce, and 17 provide for their families and themselves. 18 Sec. 4. NEW SECTION . 91F.2 Definitions. 19 1. Applicant means a person pursuing employment with an 20 employer or with or through an employment agency. 21 2. Criminal record or criminal history means information 22 collected or possessed by any criminal justice agency or 23 judicial system in this state or in another jurisdiction, 24 including a federal, military, tribal, or foreign jurisdiction, 25 concerning individuals which information includes identifiable 26 descriptions and notations of arrests, detentions, indictments, 27 or other formal criminal charges, and any disposition arising 28 therefrom, including acquittal, deferred judgment, sentencing, 29 correctional supervision, release, or conviction, and any 30 sentence arising from a verdict or plea of guilty or nolo 31 contendere, including a sentence of incarceration, a suspended 32 sentence, a sentence of probation, or a sentence of conditional 33 discharge. 34 3. Director means the director of the department of 35 -2- LSB 1602XS (2) 91 je/js 2/ 9
S.F. 155 inspections, appeals, and licensing. 1 4. Employer means a person who has four or more employees 2 in the current or preceding calendar year and includes an agent 3 of such a person. For purposes of this chapter, individuals 4 who are members of the employers family shall not be counted 5 as employees. 6 5. Employment agency means a person who, with or without 7 compensation, regularly brings together those desiring to 8 employ and those desiring employment and includes an agent of 9 such a person. 10 Sec. 5. NEW SECTION . 91F.3 Prohibited hiring practices 11 exceptions. 12 1. An employer or employment agency shall not inquire 13 about or require disclosure of the criminal record or criminal 14 history of an applicant until the applicants interview is 15 being conducted or, if an interview will not be conducted, 16 until after a conditional offer of employment is made to the 17 applicant by the employer or employment agency. 18 2. Subsection 1 does not apply to the following positions 19 if an employer or employment agency establishes a separate 20 application form for such positions that includes the title and 21 job description of the position, the specific state or federal 22 law or bonding requirement that applies to the position, and 23 the types of criminal offenses that would preclude an applicant 24 from being hired for the position: 25 a. Positions for which employers are required to exclude 26 applicants with certain criminal convictions from employment 27 due to federal or state law. 28 b. Positions for which a fidelity bond or an equivalent 29 bond is required and an applicants conviction of one or more 30 specified criminal offenses would disqualify the applicant from 31 obtaining such bond, in which case an employer may include a 32 question or otherwise inquire whether the applicant has ever 33 been convicted of such specified criminal offenses. 34 3. Subsection 1 does not prohibit an employer or employment 35 -3- LSB 1602XS (2) 91 je/js 3/ 9
S.F. 155 agency from notifying applicants in writing of specific 1 offenses that will disqualify an applicant from employment in a 2 particular position as permitted by subsection 2. 3 4. Subsection 1 does not apply to the following positions: 4 a. Positions for which an employee will work within the 5 residence of the employer if the employer or members of the 6 employers family reside therein during such employment. 7 b. Positions for which an employee will have entry access to 8 a personal residence or an occupied unit in a multiple housing 9 structure. 10 c. Positions for which an employee will render personal 11 service to the person of the employer or members of the 12 employers family. 13 5. An employment agency shall not be liable for a violation 14 of subsection 1 if the employment agency can demonstrate by 15 clear and convincing evidence that such violation was caused by 16 the employment agencys good-faith reliance on an affirmative 17 representation by an employer that one of the exceptions listed 18 in subsection 2 or 4 applied to the position in question. The 19 employer shall be liable for any such violations. 20 Sec. 6. NEW SECTION . 91F.4 Powers and duties of the 21 director. 22 1. The director may hold hearings and investigate alleged 23 violations of this chapter by an employer or employment agency. 24 2. The director may assess and recover civil penalties in 25 accordance with sections 91F.5 and 91F.6. 26 3. The director shall adopt rules pursuant to chapter 17A to 27 administer this chapter. 28 Sec. 7. NEW SECTION . 91F.5 Civil penalties amount. 29 An employer or employment agency who violates the provisions 30 of this chapter shall be subject to a penalty as follows: 31 1. For a first violation, the director shall issue a written 32 warning to the employer or employment agency that includes 33 notice regarding penalties for subsequent violations and the 34 employer or employment agency shall have thirty days to remedy 35 -4- LSB 1602XS (2) 91 je/js 4/ 9
S.F. 155 the violation. 1 2. For a second violation, or if a previous violation is 2 not remedied within thirty days of notice by the director, 3 the director may impose a civil penalty of up to five hundred 4 dollars. 5 3. For a third violation, or if a previous violation is 6 not remedied within sixty days of notice by the director, the 7 director may impose a civil penalty of up to one thousand five 8 hundred dollars. 9 4. For subsequent violations, or if a previous violation 10 is not remedied within ninety days of notice by the director, 11 the director may impose a civil penalty of up to one thousand 12 five hundred dollars for every thirty days that pass thereafter 13 without compliance. 14 Sec. 8. NEW SECTION . 91F.6 Civil penalties recovery. 15 1. The director may propose that an employer be assessed 16 a civil penalty as provided in section 91F.4 by serving the 17 employer with notice of such proposal in the same manner as an 18 original notice is served under the rules of civil procedure. 19 Upon service of such notice, the proposed assessment shall be 20 treated as a contested case under chapter 17A. However, an 21 employer or employment agency must request a hearing within 22 thirty days of being served. 23 2. If an employer or employment agency does not request a 24 hearing pursuant to subsection 1 or if the director determines, 25 after an appropriate hearing, that an employer or employment 26 agency is in violation of this chapter, the director shall 27 assess a civil penalty in accordance with section 91F.5. 28 3. An employer or employment agency may seek judicial 29 review of any assessment made under subsection 2 by instituting 30 proceedings for judicial review pursuant to chapter 17A. 31 However, such proceedings must be instituted in the district 32 court of the county in which the violation or one of the 33 violations occurred and within thirty days of the day on which 34 the employer was notified that an assessment has been made. 35 -5- LSB 1602XS (2) 91 je/js 5/ 9
S.F. 155 4. After the time for seeking judicial review has expired or 1 after all judicial review has been exhausted and the directors 2 assessment has been upheld, the director shall request the 3 attorney general to recover the assessed penalties in a civil 4 action. 5 5. Civil penalties recovered pursuant to this section shall 6 be remitted by the director to the treasurer of state for 7 deposit in the general fund of the state. 8 Sec. 9. NEW SECTION . 91F.7 Construction. 9 This chapter shall not be construed to require an employer to 10 employ an individual with a criminal record. 11 Sec. 10. EFFECTIVE DATE. This division of this Act takes 12 effect January 1, 2026. 13 DIVISION II 14 CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 15 Sec. 11. CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 16 AND REPORT. 17 1. A criminal history employment application task force 18 is created. The task force shall consist of the following 19 members: 20 a. The director of the department of inspections, appeals, 21 and licensing or the directors designee, who shall represent 22 public sector employers. 23 b. Two representatives of established civil rights and 24 civil liberties organizations appointed by the director. 25 c. Two representatives of private sector employers 26 appointed by the director. 27 d. One representative of a private sector labor 28 organization appointed by the director. 29 e. One representative of a statewide public sector labor 30 organization appointed by the director. 31 2. The task force shall study appropriate voluntary 32 standards and procedures for evaluating employment applications 33 from an individual with a criminal history, including but not 34 limited to the nature of the crime, the age at which the crime 35 -6- LSB 1602XS (2) 91 je/js 6/ 9
S.F. 155 was committed, the nature of the duties of the position applied 1 for, and relevant evidence of the individuals rehabilitation. 2 3. The department of inspections, appeals, and licensing 3 shall provide staffing services for the task force. The 4 director or the directors designee shall serve as the 5 chairperson of the task force. 6 4. The members of the task force shall serve without 7 compensation and shall not be reimbursed for their expenses. 8 5. The task force shall submit a report regarding its 9 findings and recommendations to the governor and the general 10 assembly no later than January 1, 2026. The report shall 11 include a model pamphlet or other publication in both printed 12 and electronic form on evaluating employment applications 13 from individuals with criminal histories to be distributed to 14 employers in Iowa in a manner similar to other information 15 distributed by the director. 16 Sec. 12. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanations substance by the members of the general assembly. 21 DIVISION I PROHIBITED HIRING PRACTICES CRIMINAL 22 RECORD OR CRIMINAL HISTORY. Division I of this bill prohibits 23 an employer or employment agency from inquiring about or 24 requiring disclosure of the criminal record or criminal 25 history of an applicant until the applicants interview is 26 being conducted. If an interview for the position will not be 27 conducted, the prohibition applies until after a conditional 28 offer of employment is made to the applicant by the employer or 29 employment agency. 30 The prohibition does not apply to certain positions listed 31 in the division if an employer or employment agency establishes 32 a separate application form for such positions that includes 33 certain information listed in the division. The division does 34 not prohibit an employer or employment agency from notifying 35 -7- LSB 1602XS (2) 91 je/js 7/ 9
S.F. 155 applicants in writing of specific offenses that will disqualify 1 an applicant from employment in a particular position as 2 permitted by these exceptions. 3 The prohibition does not apply to certain additional 4 positions listed in the division. 5 An employment agency shall not be liable for a violation of 6 the prohibition if the employment agency can demonstrate by 7 clear and convincing evidence that such violation was caused by 8 the employment agencys good-faith reliance on an affirmative 9 representation by an employer that one of the exceptions listed 10 in the bill applied to the position in question. The employer 11 shall be liable for any such violations. 12 The division defines applicant as a person pursuing 13 employment with an employer or with or through an employment 14 agency. The division defines employer as a person who has 15 four or more employees in the current or preceding calendar 16 year and an agent of such a person, excluding family members. 17 The division defines employment agency as a person who, 18 with or without compensation, regularly brings together those 19 desiring to employ and those desiring employment and an agent 20 of such a person. 21 The division defines criminal record or criminal history 22 as information collected or possessed by any criminal 23 justice agency or judicial system in this state or in another 24 jurisdiction, including a federal, military, tribal, or 25 foreign jurisdiction, concerning individuals which information 26 includes identifiable descriptions and notations of arrests, 27 detentions, indictments, or other formal criminal charges, 28 and any disposition arising therefrom, including acquittal, 29 deferred judgment, sentencing, correctional supervision, 30 release, or conviction, and any sentence arising from a verdict 31 or plea of guilty or nolo contendere, including a sentence of 32 incarceration, a suspended sentence, a sentence of probation, 33 or a sentence of conditional discharge. 34 An employer or employment agency that violates the 35 -8- LSB 1602XS (2) 91 je/js 8/ 9
S.F. 155 provisions of the division is subject to civil penalties 1 ranging from a written warning for a first violation to up to 2 $1,500 every 30 days for a fourth or subsequent violation not 3 remedied within 90 days. 4 The director of the department of inspections, appeals, and 5 licensing may hold hearings and investigate alleged violations 6 of the division by an employer or employment agency, may assess 7 and recover civil penalties and seek assistance from the 8 attorney general in such recovery, and shall adopt rules to 9 administer the division. 10 The division shall not be construed to require an employer to 11 employ an individual with a criminal record. 12 The division takes effect January 1, 2026. 13 DIVISION II CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK 14 FORCE. Division II of the bill creates a criminal history 15 employment application task force. The task force shall study 16 appropriate voluntary standards and procedures for evaluating 17 employment applications from an individual with a criminal 18 history, including but not limited to the nature of the crime, 19 the age at which the crime was committed, the nature of the 20 duties of the position applied for, and relevant evidence of 21 the individuals rehabilitation. 22 The division lists the membership of the task force. The 23 director shall be the chairperson of the task force and 24 the labor services division of the department of workforce 25 development shall provide staffing services for the task force. 26 The task force shall submit a report regarding its findings 27 and recommendations to the governor and the general assembly no 28 later than January 1, 2026. The report shall include a model 29 pamphlet or other publication in both printed and electronic 30 form on evaluating employment applications from individuals 31 with criminal histories to be distributed to employers in Iowa 32 in a manner similar to other information distributed by the 33 director. 34 The division takes effect upon enactment. 35 -9- LSB 1602XS (2) 91 je/js 9/ 9