Iowa Wage and Hour FAQs

Iowa Overtime Law, Minimum Wage Questions

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What is the minimum wage in Iowa?

The current Iowa minimum wage is $7.25 per hour.

Are tipped employees entitled to the minimum wage?

Tipped employees (workers who receive at least $30 per month in tips) must be paid a direct hourly wage of at least $4.35 per hour. If the worker’s tips plus direct wage does not equal the current minimum wage, the employer must make up the difference.

Can new employees be paid at a rate that is less than the current minimum wage?

Iowa employers are allowed to pay an “initial employment wage” of $6.35 per hour during the initial 90 days of employment. The Iowa initial employment wage is not the same as the federal training wage which allows certain workers to be paid less than minimum wage.

Which employers are subject to Iowa minimum wage law?

In general, companies that make at least $300,000 per year must follow the regulations set by Iowa minimum wage law. In addition, certain employers or “named enterprises” must comply with Iowa minimum wage law regardless of sales or business volume. Named enterprises include hospitals, public agencies, schools and preschools, certain daycares and residential care facilities for the sick, elderly handicapped or gifted children.

Am I entitled to breaks under Iowa wage and hour law?

Iowa employers are not required to give breaks to adults. If an employer offers breaks, they are not required to pay for this time, as long as the workers are completely relieved of their job duties. Employers have the authority to require workers to remain on the premises during their breaks. Workers under the age of 16 must be given a 30-minute break if they work five or more hours.

Can my employer change my hours, job description or work location?

Yes. Employers are allowed to change hours, job descriptions and work locations for at-will employees. Advance notice is not required.

If I quit or am fired, when should I be paid?

Employees who voluntarily leave the company or are terminated must be paid on the next regular payday.

What can be deducted from my paycheck?

Taxes, garnishments, insurance, 401K, pensions and similar items can be deducted. Items that cannot be deducted from wages include cash shortages in money tills; tips; lost or stolen property; losses from bad checks, breakage or damage; personal protective equipment; and moving costs. Certain exceptions may apply.

Am I entitled to a pay stub?

Yes. On each regularly scheduled payday, employers must provide their workers with a pay stub stating their hours worked, wages earned and any deductions. Employers may provide their workers with access to an electronic statement, as long as the worker has the ability to print the statement. Iowa employers are not required to provide year-to-date information on the pay stub.

Am I entitled to overtime?

Iowa overtime law requires overtime to be paid only if an overtime provision is included in an employment agreement or contract.

Should I be paid for “on call” time?

Workers must consider how much of their personal activities are restricted when determining whether they should be paid for “on call” time. The more the employee’s personal activities are restricted, the more likely it is that they should be paid.

Should I be paid for meetings, lectures or training?

If an employer requires presence at meetings, lectures or training and failure to attend will most likely result in punishment, employees should be paid for this time.