Minimum wage in Iowa
Iowa's basic minimum wage is $7.25 an hour. That equals the federal minimum wage of $7.25, in force since July 24, 2009. Employers may pay tipped employees a cash wage of $4.35 and count tips toward the rest, with a tip credit of up to $2.90. Against Iowa's $7.25 floor for FLSA-covered employers, among its 6 neighbors Illinois ($15.00), Missouri ($15.00), Nebraska ($15.00), South Dakota ($11.85) and Minnesota ($11.41) are higher and Wisconsin ($7.25) is the same.
Verified against the U.S. Department of Labor on (DOL's state table updated ). Source: State Minimum Wage Laws, Minimum Wages for Tipped Employees.
At a glance
| Item | Value |
|---|---|
| State minimum wage | $7.25 |
| Against the federal $7.25 | equal to federal |
| Floor for FLSA-covered employers | $7.25 (the higher of the state and federal rates) |
| Scheduled change | None listed by DOL |
| Overtime threshold in state law | None listed by DOL (the FLSA's 40-hour rule applies to covered employers) |
| Tipped cash wage | $4.35 |
| Maximum tip credit | 40% of the applicable minimum wage ($2.90) |
Rates as DOL lists them
| Rate per hour | Applies to |
|---|---|
| $7.25 | No condition stated by DOL |
Scheduled increases
DOL lists no scheduled increase and no indexing formula for Iowa. A change would require new legislation or a ballot measure.
Tipped employees
Iowa requires a cash wage above the federal tipped minimum of $2.13; the employer may count tips toward the rest, up to the tip credit shown.
| Row | Combined cash and tip minimum | Maximum tip credit | Minimum cash wage | Tipped employee defined by monthly tips of |
|---|---|---|---|---|
| Iowa | $7.25 | 40% of the applicable minimum wage ($2.90) | $4.35 | More than $30 |
A dash means DOL left the cell blank. DOL's general footnote 1: Other additional deductions are permitted, for example for meals and lodging.
What DOL also notes
- The Iowa minimum wage equals the federal minimum wage rate if it is set below the federal rate.
Neighbors and the federal floor
| State | State rate | Floor for FLSA-covered employers |
|---|---|---|
| Iowa | $7.25 | $7.25 |
| Illinois | $15.00 | $15.00 |
| Missouri | $15.00 | $15.00 |
| Nebraska | $15.00 | $15.00 |
| South Dakota | $11.85 | $11.85 |
| Minnesota | $11.41 | $11.41 |
| Wisconsin | $7.25 | $7.25 |
| Federal (FLSA) | $7.25 | $7.25 |
More than one law can apply
DOL states that where federal, state and local minimum wage laws all cover an employer, the employer must pay the highest applicable rate. Whether a particular job is covered by the Fair Labor Standards Act, by Iowa's law, or by a city or county ordinance depends on facts this site does not assess. City and county rates are not in DOL's table and are not shown here. This page describes published rates and is not legal advice; for how to raise an underpayment, see FastGuide.
Take-home pay and benefits calculators for Iowa
FastCalc, a sister site, has these calculators for Iowa. Each takes your own figures; this site computes nothing.
Related
- Iowa wage profile: what occupations actually pay in Iowa, from BLS data.
- Minimum wage by state and the federal minimum wage.
- Federal versus state minimum wage and tipped wages and tip credits.
- Take-home pay calculator on FastCalc for what $7.25 an hour leaves after withholding; this site computes nothing.