Since July 1, 2008, it has been illegal in Iowa to discriminate against someone in employment (as well as education, public accommodations, credit, and housing) on the basis of sexual orientation or gender identity. Harassment based on either protected class is also illegal.
This does not give gays and lesbians “special rights.” The law protects straight people from being harassed or discriminated against because of their sexual orientation as well.
On a related matter, the Iowa Supreme Court has held that it violates the equal protection guarantees in the Iowa Constitution for the State not to allow same-sex couples to marry on the same basis as opposite-sex couples. Everyone should actually read the Court’s decision, whether they agree with it or not. Read the Varnum v. Brien decision