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

Key minimum wage facts for Iowa
ItemValue
State minimum wage$7.25
Against the federal $7.25equal to federal
Floor for FLSA-covered employers$7.25 (the higher of the state and federal rates)
Scheduled changeNone listed by DOL
Overtime threshold in state lawNone listed by DOL (the FLSA's 40-hour rule applies to covered employers)
Tipped cash wage$4.35
Maximum tip credit40% of the applicable minimum wage ($2.90)

Rates as DOL lists them

Basic minimum rates in Iowa with their conditions
Rate per hourApplies to
$7.25No 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.

Tipped employee minimum wage in Iowa
RowCombined cash and tip minimumMaximum tip creditMinimum cash wageTipped employee defined by monthly tips of
Iowa$7.2540% of the applicable minimum wage ($2.90)$4.35More 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

Minimum wage in the states bordering Iowa
StateState rateFloor 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.

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