New Iowa law limits truck driver compensation

May 15, 20230

Iowa has passed a new bill to limit the amount of compensation a trucking company or commercial driver can claim after an accident.

Emotional damages in cases involving bodily injury or death are now capped at $5 million.

The law was signed into law by Iowa Gov. Kim Reynolds on Friday, May 12.

The restriction will not apply if the court finds that:

If the driver is operating a commercial motor vehicle with an alcohol concentration, as defined in section 321J.1, of .04 or more.
If the driver is operating a commercial motor vehicle under the influence of a drug.
If the driver refuses to submit to chemical testing.
If the driver is committing a felony involving the use of a motor vehicle.
The use of a commercial motor vehicle involving the manufacturing, distributing or dispensing of a controlled substance as defined in section 124.101; not including the lawful transport for hire of a controlled substance.
If the driver knowing operates a commercial motor vehicle without a proper license or while their commercial driver’s license is revoked, suspended or canceled. Or while the person is otherwise disqualified from operating a commercial motor vehicle.
If the driver is operating a commercial motor vehicle without the possession of a commercial driver’s license or commercial learner’s permit valid for the vehicle operated.
If the driver is operating a commercial motor vehicle involving an act or practice of human trafficking.
If the driver is operating recklessly.
If the driver is using an electronic communication device while driving.
If the driver is speeding 15 miles per hour or more over the legal speed limit.
If the driver is violating any state or local law or ordinance restricting or prohibiting the use of a mobile telephone, computer, tablet or other device that is not a part of the vehicle while operating the vehicle.

The compensation cap will be adjusted for inflation on 1 January 2028 and 1 January of each even-numbered year thereafter.