Iowa Wage and Hour Law

Iowa Minimum Wage Law and Covered Employers

In general, companies that make at least $300,000 are subject to Iowa minimum wage law. Additionally, some types of employers must comply with the law regardless of business revenue. “Named enterprises” that must comply with the Iowa Minimum Wage Law include the following:

• Schools and preschools
• Public agencies
• Public transportation subject to state or local regulation
• Hospitals and residential care facilities for the sick, elderly, mentally or physically handicapped or gifted children
• Most daycares
• Construction, laundry and dry cleaning companies

Certain in-home daycares with five or fewer children and with only one employee, or whose only employees are members of that individual’s immediate family, are excluded from the Iowa minimum wage law. Certain employers are not required to follow Iowa Minimum Wage Law, such as certain employers in agriculture and some summer camps.

Minimum Wage for Iowa Workers

The current minimum wage in Iowa is $7.25 per hour, the same as the federal rate.

Iowa "Initial Employment Wage"

Employers in Iowa can pay $6.35 per hour, an initial employment wage, for the first 90 days of work. The initial employment wage in Iowa is not the same as the training wage which is allowed by federal wage and hour law.

Iowa Minimum Wage: Tipped Employees

Tipped employees may be paid $4.35 per hour. However, if an employee's tips plus direct wages do not equal at least $7.25 per hour, the employer must make up the difference.

Overtime Law in Iowa

Because Iowa does not have state-specific laws regarding overtime law, Iowa law states that employers are only required to pay overtime if it is included in an employment contract. For more information on overtime law in Iowa, visit the website of the Iowa Division of Labor Services.

For more information, view the Iowa Department of Labor Website