Transportation Executive Summary: Iowa Joins a Growing Number of States Seeking to Clarify Motor Carrier Employment Status—Adopts SF 377
Recently, Governor Kim Reynolds signed into law Senate File 377 which addresses “the deployment, implementation, or use of a motor carrier safety improvement when determining a person’s employment status.” This article will review the provisions of the Act.
The Act adopted a new Code section (325B.2) about prohibited consideration of factors in determining employment status in the transportation arena. Specifically, if a person working with a motor carrier is required to use a motor carrier safety improvement plan, that fact cannot be used as a factor in determining if the person is an employee of the motor carrier, independent contractor, or jointly employed employee.
The section defines “motor carrier safety improvement” as “any device, equipment, software, technology, procedure, training, policy, program, or operational practice intended and primarily used to improve or facilitate compliance with traffic safety laws.” This includes “motor carrier safety, safety of a motor vehicle, safety of the operator of a motor vehicle, and safety of other highway users.”
The bill passed the Legislature and was signed by the Governor in March of 2025. With support from the state trucking association, Iowa joins 10 other states using this model language to clarify independent contractor employment status.
The Act went into effect July 1, 2025.
For more information
Contact John F. Fatino for more information about trucking and transportation matters at 515-288-6041.
