Under the Iowa Wage Payment Collection Law, vacation pay is considered part of an employee’s wages if it is stipulated in the employer’s agreement or policy. Employers must adhere to their agreements or policies regarding vacation pay and comply with the law on wage payments.
Iowa Labor Laws
Iowa Minimum Wage
The minimum wage rate in Iowa is $7.25 per hour, a rate that has been in place since January 1, 2008.
Iowa Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of Iowa Labor Laws
The minimum wage rate in Iowa is $7.25 per hour, a rate that has been in place since January 1, 2008. Prior to that, the minimum wage increased to $6.20 per hour in 2007 and to $5.15 per hour in 1997.
Municipality Minimum Wage Laws
Although four counties—Johnson, Linn, Polk, and Wapello—had previously enacted laws to raise their minimum wage rates above the state level, a preemption law signed by the governor in 2017 nullified these higher rates. House File 295 stipulates that no county or city can pass an ordinance that sets employment terms exceeding federal or state law requirements, including minimum wage rates.
Iowa Minimum Wage Exemptions
For the first 90 days of employment, an employer is permitted to pay a starting wage of $6.35 per hour.
Iowa Posting Requirements
Required posters:
- Minimum Wage
- Fair Employment
- Safety and Health Protection on the Job
- Unemployment Insurance
- No Smoking Sign
Tipped Wage in Iowa
Employers are allowed to pay tipped employees a minimum wage of $4.35 per hour, provided the employee earns at least $30 per month in tips. If the combined total of tips and wages does not average out to at least $7.25 per hour over a workweek, the employer is required to make up the difference.
Overtime Wage in Iowa
Employers are required to pay one-and-a-half times the regular rate for any hours worked beyond 40 in a workweek. In Iowa, employers must adhere to the federal Fair Labor Standards Act to determine who is exempt from overtime.
Child Labor Laws in Iowa
Minors under 16 years old are not allowed to work before 7 a.m. or after 7 p.m. However, from June 1 through Labor Day, they can work until 9 p.m. During the school year, their work hours are limited to four hours per day and 28 hours per week, which increases to eight hours per day and 40 hours per week when school is not in session. If the workday lasts five hours or longer, breaks must be provided.
Due to a 2019 law, Senate File 337, these hour restrictions do not apply to minors in certain situations, including:
- Volunteer work for a charitable or public purpose
- Referees aged 12 or older working for a charitable organization, a unit of government, or an organization recognized by the U.S. Olympic Committee
- The Iowa Summer Youth Corps Program
- Any recognized program of the Iowa National Service Corps for children over 14 years old
Employer Recordkeeping Requirements in Iowa
Iowa employers are required to maintain the following records for a minimum of three years:
- Employee’s full name and Social Security number
- Address, including zip code
- Birth date, if under 19
- Sex and occupation
- Time and day of the week when the employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis on which the employee’s wages are paid
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from the employee’s wages
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
Indiana Labor Law Questions & Answers
Yes, employers with annual sales or business of at least $300,000 must pay the minimum wage. Additionally, certain employers, regardless of their sales, are required to pay the minimum wage. These include public agencies, construction companies, hospitals (both for-profit and nonprofit), institutions caring for the sick, aged, or mentally ill, and specific schools.
Minors under 16 can work up to four hours per day and 28 hours per week during the school year. When school is not in session, they can work up to eight hours per day and 40 hours per week.
Iowa law does not limit the number of hours adult employees can work. However, any hours worked over 40 in a workweek must be compensated at one-and-a-half times the regular pay rate, unless an employment agreement or contract specifies otherwise.
Iowa law does not mandate meal breaks for most adults. However, employers must provide a 30-minute meal break to minors under 16 if they work five or more hours in a day.
Iowa Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.