Employer-Friendly Changes to Iowa’s Private Employer Drug Testing Law Go Into Effect on July 1, 2025

The Iowa Legislature (H.F. 767) passed three updates to Iowa Code Section 730.5, Iowa’s private employer drug testing statute, which will benefit Iowa employers.

First, the legislature shifted the burden of proof for any lawsuit claiming a violation to employees or prospective employees. The law previously placed a burden on employers to prove compliance with the statute. The legislature also clarified the recovery of attorney’s fees includes “reasonable” attorney’s fees and costs, not any fees.

Second, the legislature added language that the employer gets to designate which positions are deemed “safety-sensitive” for the purpose of creating unannounced (random) drug testing pools. The Iowa Supreme Court had previously held that positions designated as safety sensitive must meet the statutory definition. This update appears to create a presumption or deference in favor of an employer’s designation of a position as safety-sensitive. It is not clear whether an employer’s designation is subject to challenge by an employee. It’s still advisable that any position designated by an employer as safety-sensitive still meets the statutory definition, which is a position “wherein an accident could cause loss of human life, serious bodily injury, or significant property or environmental damage, including a job with duties that include immediate supervision of a person in a job that meets the requirement of this paragraph.”

Third, the legislature added a provision that would allow notice of positive test results to be offered to employees by in-person exchange or electronic notification. The notice provisions have been a particular bugaboo for Iowa employers. The statute previously required notice of a positive test result for an existing employee to be sent via certified mail, return receipt requested. The new statute states that an employer may offer an employee the option to receive notice by those alternate means if the employee chooses. While not certain until there is a court case interpreting this provision, it would appear that providing notice via in-person or electronic means would require an employee to agree to such forms of notice. This can likely be accomplished through a written signed authorization.  If notice is provided via in person exchange, an employer would be wise to document the delivery.

Even with these statutory changes, Iowa’s private employer drug and alcohol testing statute remains challenging for employers to maintain complete compliance. These changes will help with three specific issues that have arisen in cases finding employer violations over the past few years, but employers need to remain vigilant in their compliance efforts.

Please contact your favorite Nyemaster Goode employment attorney if you have any questions or would like assistance revising your policies and procedures to take advantage of these statutory changes.