Modifications to the Iowa Civil Rights Act and its Impact on Employers

On February 27, 2025, the Iowa legislature passed Senate File 418, which modified the Iowa Civil Rights Act to eliminate protections for gender identity found in the Iowa Civil Rights Act, provided instruction on indications of a person’s sex on vital records and addressed school curriculum relating to gender identity theory.  Governor Reynolds is expected to sign the bill into law.  Although some states do not explicitly list gender identity as a protected class, Iowa is the first state to remove this already existing protection. 

The purpose of this client alert is to discuss the modifications to the Iowa Civil Rights Act and its impact on Iowa employers. This client alert does not discuss the changes to vital records or school curriculum.

Background 

In 2007, Iowa codified gender identity as a protected class in the Iowa Civil Rights Act.   Gender identity was then defined by the Iowa Civil Rights Act as: “a gender-related identity of a person, regardless of the person's assigned sex at birth.” Iowa Code section 216.2(12).  In the 2022 case, Vroegh v. Iowa Department of Corrections, the Iowa Supreme Court explained that employees have a right to be free from gender identity discrimination based on the gender identity protection outlined by the Iowa Civil Rights Act. 972 N.W.2d 686 (Iowa 2022).

How does Senate File 418 relate to Iowa employers? 

Senate File 418 eliminates “gender identity” from the Iowa Civil Rights Act.  The following protected classes remain under the Iowa Civil Rights Act: “race, creed, color, sex, sexual orientation, national origin, religion, ancestry, and disability.” Iowa Code section 216.6. 

The Iowa Civil Rights Act applies to Iowa employers employing four or more employees.  

Senate File 418 also redefines gender identity (in the context of school curriculum) to mean: “an individual’s subjective identification as male, female, or neither male nor female. Gender identity shall not be considered a synonym or substitute for sex or gender.” 
 
When Governor Reynolds signs this bill into law, how will it impact Iowa employers?
Do I need to change my policies?

To be legally compliant, most Iowa employers should keep gender identity as a protected class and not modify their policies as they will continue to be covered by federal or municipal law that provides gender identity is a protected class. Even for those employers that are not covered by federal law or a municipal code (explained below), the prudent course is to continue treating gender identity as a protected category in practice. This maintains a respectful, inclusive workplace environment and avoids liability if Senate File 418 is legally challenged and overturned in whole or in part. In a climate of rapidly shifting laws, consistent internal policies can provide stability.

This is why:  

Gender Identity is Still Protected Under Federal Law: 

Under Title VII of the Federal Civil Rights Act, gender identity remains a protected class.   To be subject to Title VII, the employer must employ 15 or more employees.

In Bostock v. Clayton County, 140 S. Ct. 1731 (2020), the United States Supreme Court found that discriminating against an individual for being transgender violates Title VII’s ban on discrimination “because of sex.”  Justice Gorsuch’s majority opinion explained: “An individual's homosexuality or transgender status is not relevant to employment decisions. That's because it is impossible to discriminate against a person for being homosexual or transgender without discriminating against that individual based on sex.” Bostock v. Clayton Cnty., Georgia, 590 U.S. 644, 660 (2020).

Justice Gorsuch continued, with respect to transgender status: “Or take an employer who fires a transgender person who was identified as a male at birth but who now identifies as a female. If the employer retains an otherwise identical employee who was identified as female at birth, the employer intentionally penalizes a person identified as male at birth for traits or actions that it tolerates in an employee identified as female at birth. Again, the individual employee's sex plays an unmistakable and impermissible role in the discharge decision.” Id. 

Gender Identity is Still Protected Under Certain Iowa Municipal Codes and City Ordinances 

Certain Iowa municipalities and cities have ordinances that specifically state gender identity is a protected class. For example, the following municipalities provide that gender identity is a protected class under its civil rights or human rights laws: 

• Ames, Chapter 14 of Municipal Code, applies to employers with four or more employees within that city’s limits. 
• Cedar Rapids, Chapter 69 of Municipal Code, applying to any person or entity who employs individuals within that city’s limits.
• Davenport, 2.58 of Municipal Code, applying to any person or entity who employs individuals within that city’s limits.
• Des Moines, Chapter 62 of Municipal Code, applying to any person or entity who employs four or more individuals within that city’s limits.
• Iowa City, Chapter 2 of Municipal Code, applying to any person or entity who employs individuals within that city’s limits.

Note that some city ordinances state that they are specifically in place to implement the Iowa Civil Rights Act (e.g. Ames), while others reference both the Iowa Civil Rights Act and the Federal Civil Rights Act (e.g. Cedar Rapids) -- we are monitoring how and whether the change to the Iowa Civil Rights Act impacts these municipal codes and city ordinances. 

Review the Senate File 418

There is no provision in Senate File 418 that requires employers to remove gender identity protections.  Instead, it simply means that once the bill is effective such a claim can no longer be made under the Iowa Civil Rights Act. 

Considerations: 

1. Does the company employ 15 or more employees?  
   If yes, then Title VII protections (including gender identity) are still required. 
    
2. Does the company employ less than 15 employees, but does so in a municipality or city that has a civil rights or human rights ordinance applicable to your company?  
   If yes, then gender identity protections (as of today) are still required.  
   
   Above, I have listed a few examples of cities or municipalities in Iowa that explicitly state gender as a protected class, but the list is not all-inclusive.  Please check with your attorney to confirm whether there is an applicable municipal or city ordinance.
    
3.  If none of the above apply and you have confirmed with your attorney that the company can legally remove gender identity protections, what are the impacts on your employees and with public relations in your community if you remove gender identity protections?  Do you want to remove protections now given the high likelihood of legal challenge? 

What Happens Next: 

There is a high likelihood of legal challenges to Senate File 418. It is possible a court could enjoin the law or parts of it, re-establishing protections. Also, federal agencies like the EEOC might increase enforcement where protections have been removed, to fill the gap.  For example, the federal DOL took up stronger enforcement steps when Iowa passed child labor laws that were counter to federal protections. 

Please contact an employment law attorney with any questions and we will continue to update you. 

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Simmons Perrine Moyer Bergman PLC is a full-service law firm with locations in Cedar Rapids and Coralville, Iowa. For more information, visit spmblaw.com. 

Disclaimer: This information is intended for general information purposes only and is not intended, nor should it be construed or relied on, as legal advice. Please consult your attorney if specific legal information is desired.