Iowa Minimum Wage for 2016, 2017
Contents :: Iowa Minimum Wage
Iowa's state minimum wage rate is $7.25 per hour. This is the same as the current Federal Minimum Wage rate. The minimum wage applies to most employees in Iowa, with limited exceptions including tipped employees, some student workers, and other exempt occupations.†
The Iowa minimum wage has not been changed since at least 2008. Iowa's minimum wage rate is linked to a Customer Price Index, which is intended to raise the rate along with inflation. The current minimum wage rate is re-evaluated yearly based on these values.
The Iowa minimum wage is automatically replaced with the Federal Minimum Wage rate if it is becomes higher than the State minimum. Most small businesses grossing under $300,000 yearly do not have to pay the minimum wage, and employers are allowed to pay less then the Iowa minimum wage for the first 90 days of employment (as a "training period"). Tipped employees in Iowa must be paid at least 60% of the applicable minimum wage. LOCAL MINIMUM WAGE Johnson County: Has a minimum wage of 8.20 per hour. This will be increased to $9.15 (5-1-16), and $10.10 (7-1-17) to be indexed to the Consumer Price Index thereafter.
Iowa employers may not pay you under $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.
If you have questions about the Iowa minimum wage, please ask us and someone will respond to you as soon as possible. Looking for a new job? Use the free Iowa job search utility to find local job openings hiring now.
All Iowa employers must display an approved Iowa minimum wage poster in a prominent place to inform employees about the minimum wage and their worker's rights under Iowa labor law.
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Iowa Minimum Wage & Labor Law Posters
The Fair Labor Standards Act (FLSA) and Iowa labor law requires all employers in Iowa to visibly display an approved Iowa minimum wage poster, and other Iowa and federal labor law posters, to ensure that all employees are aware of federal and Iowa labor law and overtime regulations. Failure to display a Iowa labor law poster in the workplace can result in severe fines.
The Iowa minimum wage poster, and additional required Iowa labor law posters, are also available on the Iowa labor law posters download page.
Iowa Overtime Minimum Wage
All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage (learn more about Iowa overtime pay). Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Iowa law does not specify a daily overtime limit).
The FLSA guarantees all IA employees adequate overtime compensation for all qualifying overtime hours worked. If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Iowa Department of Labor.
Iowa Minimum Wage Exemptions
In addition to any Iowa-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. You may be paid under the Iowa minimum wage if you fit into one of the following categories:
- Iowa Under 20 Minimum Wage - $4.25 - Federal law allows any employer in Iowa to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
- Iowa Tipped Minimum Wage - See Here - Employees who earn a certain amount of tips every month may be paid a lower cash minimum wage, but must earn at least $7.25 including tips every hour. For more details, read about the Iowa tipped minimum wage.
Local Minimum Wage Rates in Iowa
While Iowa's state minimum wage is $7.25 per hour, there are localities that have set their own, higher minimum wages that apply to some or all employees within their jurisdictions. The following is a table of all Iowa localities with established minimum wage laws.
|Locality||Applies To||Minimum Wage||Comparison to State|
|Johnson County||All employees||$10.10||+$2.85|
Frequently Asked Questions - Iowa Minimum Wage & Labor Law
- What is the Iowa minimum wage?
The current Iowa minimum wage of $7.25 per hour is the lowest amount a non-exempt employee in Iowa can legally be paid for hourly work. Special minimum wage rates, such as the "Iowa waitress minimum wage" for tipped employees, may apply to certain workers.
- How much will I earn working a minimum wage jobin Iowa?
A full time minimum wage worker in Iowa working 40 hours a week, 52 weeks a year, will earn $58.00 per day, $290.00 per week, and $15,080.00 per year1. The national poverty line for a family unit consisting of two people is $16,020.00 per year.
- What is the Iowa under 18 minimum wage?
Iowa employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Other labor law exemptions for minors in Iowa may exist.
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1 These earnings estimates do not account for the Iowa income tax , federal income tax, or local/municipal income taxes.
2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services