Iowa Overtime Law

Iowa Minimum Wage Law

Iowa Minimum Wage is currently the same as the federal minimum wage, $7.25 per hour.

Iowa Tipped Minimum Wage

If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour. If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference.

Iowa "Initial Employment Wage"

An Iowa employer is allowed to pay an “initial employment wage” of $6.35 per hour for the first 90 days. Iowa’s “initial employment wage” is not the same thing as the federal “training wage” that allows certain employees to be paid less than minimum wage.

Employers Covered By Iowa Minimum Wage Law

Generally employers that gross at least $300,000 in sales or business per year must comply with the Iowa Minimum Wage Law. In addition, some types
of employers or “named enterprises” must comply with the law regardless of business
“Named enterprises” that must comply with the Iowa Minimum Wage Law
regardless of business volume include: public agencies; hospitals and residential care facilities for the sick, elderly, mentally or physically handicapped or gifted children; schools and preschools; public transportation subject to state or local regulation; most daycares; and employers engaged in construction, laundry and dry cleaning. 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. Some types of employers are not required to comply with the Iowa Minimum Wage Law, such as certain employers in agriculture, certain summer camps, and others.

Iowa Overtime Law

There is no state-specific Iowa Overtime Law.  Iowa law only requires overtime if overtime is included in the employment agreement or contract between employer and employee.

To learn more about Iowa Wage and Hour Law and Iowa Overtime Law visit the Iowa Division of Labor Services at http://www.iowaworkforce.org/labor/wage.htm

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