diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index e3708126322f..27ead70e65f7 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -4048,7 +4048,8 @@ function doesTransactionThreadHaveViolations(report: OnyxEntry<Report>, transact
     if (report?.stateNum !== CONST.REPORT.STATE_NUM.OPEN && report?.stateNum !== CONST.REPORT.STATE_NUM.SUBMITTED) {
         return false;
     }
-    return TransactionUtils.hasViolation(IOUTransactionID, transactionViolations);
+
+    return TransactionUtils.hasViolation(IOUTransactionID, transactionViolations) && !isSettled(IOUReportID);
 }
 
 /**
@@ -4135,10 +4136,8 @@ function shouldReportBeInOptionList({
         return true;
     }
 
-    const reportIsSettled = report.statusNum === CONST.REPORT.STATUS_NUM.REIMBURSED;
-
-    // Always show IOU reports with violations unless they are reimbursed
-    if (isExpenseRequest(report) && doesReportHaveViolations && !reportIsSettled) {
+    // Always show IOU reports with violations
+    if (isExpenseRequest(report) && doesReportHaveViolations) {
         return true;
     }
 
diff --git a/src/libs/SidebarUtils.ts b/src/libs/SidebarUtils.ts
index 3ad22a7f9c9d..71b3fd23a03c 100644
--- a/src/libs/SidebarUtils.ts
+++ b/src/libs/SidebarUtils.ts
@@ -250,11 +250,6 @@ function getOptionData({
     const participantPersonalDetailList = Object.values(OptionsListUtils.getPersonalDetailsForAccountIDs(participantAccountIDs, personalDetails)) as PersonalDetails[];
     const personalDetail = participantPersonalDetailList[0] ?? {};
     const hasErrors = Object.keys(result.allReportErrors ?? {}).length !== 0;
-    let shouldShowViolations = false;
-    if (hasViolations && parentReportAction?.actionName === CONST.REPORT.ACTIONS.TYPE.IOU) {
-        const {IOUReportID} = parentReportAction?.originalMessage ?? {};
-        shouldShowViolations = !ReportUtils.isSettled(IOUReportID);
-    }
 
     result.isThread = ReportUtils.isChatThread(report);
     result.isChatRoom = ReportUtils.isChatRoom(report);
@@ -266,7 +261,7 @@ function getOptionData({
     result.isMoneyRequestReport = ReportUtils.isMoneyRequestReport(report);
     result.shouldShowSubscript = ReportUtils.shouldReportShowSubscript(report);
     result.pendingAction = report.pendingFields?.addWorkspaceRoom ?? report.pendingFields?.createChat;
-    result.brickRoadIndicator = hasErrors || shouldShowViolations ? CONST.BRICK_ROAD_INDICATOR_STATUS.ERROR : '';
+    result.brickRoadIndicator = hasErrors || hasViolations ? CONST.BRICK_ROAD_INDICATOR_STATUS.ERROR : '';
     result.ownerAccountID = report.ownerAccountID;
     result.managerID = report.managerID;
     result.reportID = report.reportID;