Final answer:
In Iowa, employers do not have absolute privilege against defamation when giving employment references; they may have a qualified privilege which can be lost if the information is shared with malice or reckless disregard for the truth.
Step-by-step explanation:
The question relates to whether employers in Iowa have an absolute privilege against defamation when giving employment references. Absolute privilege in the context of employment references is a legal term referring to the complete immunity from liability for statements made during certain activities, regardless of their truth or intent.
In general, employers do have certain protections when providing references, but the use of the term 'absolute' suggests there are no exceptions. This is false. While employers may have a 'qualified privilege', which offers protection as long as the statement is made without malice and is pertinent to the inquiry, it is not absolute. The term 'qualified' means that the privilege is available only under certain conditions and may be lost if, for instance, the employer speaks with malice, which is intent to harm, or with reckless disregard for the truth.
The U.S. government has indeed enacted laws to balance the power between workers and employers, and defamation laws have evolved to protect individuals from false statements that can harm their reputation, while also considering the freedom of speech and the need for honest feedback in employment references. Importantly, the rule cited from constitutional guarantees regarding public officials and 'actual malice' does not extend an absolute privilege to private employers or employment references.
To conclude, in Iowa, employers do not have absolute privilege against defamation when providing employment references. There are circumstances under which an employer could be held liable for defamation if the provided information is false and made with actual malice or reckless disregard for the truth.