As of 2026, Iowa's minimum wage is $7.25 per hour for most workers, the same as the federal floor set by the Fair Labor Standards Act (FLSA). Iowa last raised its rate in 2008, and the state has not enacted any increase or inflation indexing since. Two features make Iowa's law distinctive: employers may pay a lower $4.35 cash wage to tipped employees (taking a tip credit), and they may pay an initial employment wage of $6.35 per hour for the first 90 calendar days a new employee works. These figures come from Iowa Code Chapter 91D, the state's minimum wage statute. Because rates and the law can change, always confirm the current number with the Iowa Division of Labor before relying on it.
Iowa's Rate Compared to the Federal Minimum
Iowa is one of roughly 20 states whose minimum wage simply matches the federal $7.25. Iowa Code 91D.1 expressly ties the state rate to that level. This means that, unlike states such as neighboring Illinois, Minnesota, or Nebraska, Iowa workers do not get a higher state floor, and the rate does not automatically rise with inflation or on a published schedule.
The practical effect: if Congress ever raises the federal minimum wage above $7.25, Iowa's rate would rise with it because the FLSA sets a national floor that states cannot go below. But Iowa's own statute does not push the rate above the federal level on its own. There is no built-in cost-of-living adjustment in Iowa law, so the $7.25 figure stays fixed until either the Iowa Legislature or Congress acts.
Tipped Employees and the Tip Credit
Iowa allows employers to count a worker's tips toward the minimum wage obligation, a practice called a tip credit. For employees who customarily and regularly receive tips, Iowa sets a cash wage of $4.35 per hour. The employer may claim a tip credit of up to $2.90 per hour (the difference between $4.35 and $7.25), provided the worker's tips actually bring total earnings to at least the full $7.25 minimum.
Important conditions apply:
The $30 threshold. The tipped cash wage applies only to employees who receive more than $30 a month in tips. Workers below that level must be paid the full minimum wage.
Tips must close the gap. If a tipped employee's cash wage plus tips does not reach $7.25 for the hours worked, the employer must make up the shortfall. The tip credit is never allowed to leave a worker below the full minimum.
Tips belong to the employee. Tips are the property of the worker who earns them. Valid tip pooling among employees who customarily receive tips is generally permitted, but employers and most managers cannot keep employees' tips.
Note that Iowa's $4.35 cash wage is actually more generous to workers than the federal tipped minimum, which sits at just $2.13 per hour under the FLSA. Because employers must follow whichever rule is more protective, tipped workers in Iowa are entitled to the higher $4.35 cash wage.
The 90-Day Initial Employment Wage
Iowa law lets an employer pay a reduced initial employment wage of $6.35 per hour to a worker during the first 90 calendar days of employment. After those 90 days, the employee must be moved up to the full $7.25 minimum. This training-style wage is written into Iowa Code 91D.1, and the 90-day clock counts calendar days, not days actually worked. Employers cannot reset the clock by firing and rehiring a worker to keep paying the lower rate, and the provision is meant for genuinely new employees, not a tool to indefinitely underpay.
What Happened to City and County Minimum Wages
For a few years, several Iowa counties experimented with local minimum wages higher than the state rate. Johnson County (home to Iowa City), Linn County (Cedar Rapids), Polk County (Des Moines), and Wapello County all adopted ordinances raising the local floor above $7.25.
That changed in 2017. The Iowa Legislature passed House File 295, which amended state law to preempt local minimum wage ordinances. The law bars cities and counties from setting a minimum wage that differs from the state rate. As a result, those county ordinances were nullified, and the statewide $7.25 minimum once again controls everywhere in Iowa. Some employers in those counties chose to keep paying the higher wages voluntarily, but they are no longer legally required to do so.
The takeaway for workers: there is no Iowa city or county where you are legally entitled to more than the state minimum because of a local ordinance. The single statewide rate applies. This is the opposite of the situation in states like California or Washington, where local minimum wage laws stack on top of the state figure.
Overtime in Iowa
Iowa does not have its own overtime statute. Overtime for Iowa workers is governed entirely by the federal FLSA, which requires time-and-a-half pay for hours over 40 in a workweek for non-exempt employees. Iowa does not require daily overtime (no extra pay simply for working more than 8 hours in a day), and it does not require premium pay for weekends or holidays unless an employer's own policy or contract promises it. If you work more than 40 hours in a week and are not exempt, your overtime rate is 1.5 times your regular rate under federal law.
Exemptions and Who Is Covered
Not every worker is covered by the minimum wage. Iowa generally follows the federal pattern of exemptions, which can include:
Bona fide executive, administrative, and professional employees who meet the federal salary and duties tests.
Certain agricultural workers, depending on the size and nature of the operation.
Outside sales employees and some commissioned workers.
Independent contractors, who are not employees and are not covered by minimum wage law at all (though misclassification of an employee as a contractor is itself unlawful).
Whether a particular job is exempt depends on the actual duties and pay structure, not just a job title. If you are unsure, the duties test, not your title, controls.
How to Enforce Your Right to the Minimum Wage
If you believe you are being paid less than $7.25 (or less than $4.35 in cash as a tipped worker whose tips don't make up the difference), you have options:
Keep records. Save pay stubs, your own log of hours worked, and any tip records. Documentation is the single most important factor in a wage claim.
Raise it with the employer. Sometimes underpayment is a payroll error that can be corrected once flagged.
File a state wage claim. The Iowa Division of Labor, part of Iowa Workforce Development, enforces the state minimum wage and the Iowa Wage Payment Collection Law. You can file a complaint for unpaid wages.
File with the U.S. Department of Labor. Because the FLSA also applies, the federal Wage and Hour Division can investigate minimum wage and overtime violations.
Consult an attorney. Many employment lawyers handle wage cases, and the law allows recovery of unpaid wages plus, in some cases, liquidated (double) damages and attorney's fees.
Iowa law also prohibits retaliation against workers who assert their wage rights, so an employer cannot lawfully fire or punish you for filing a good-faith wage complaint.
Where to Confirm the Current Rate
Because minimum wage figures and tip-credit rules can be changed by the Legislature, do not rely on any single article, including this one, as the final word. The official source for Iowa is the Iowa Division of Labor within Iowa Workforce Development, which publishes the current state minimum wage, the tipped cash wage, and the initial employment wage. For the federal baseline and overtime rules, check the U.S. Department of Labor's Wage and Hour Division. Confirming the current figure with these agencies before making a decision protects you whether you are a worker checking your pay or an employer setting wages.
Official Iowa Sources
This page is based on Iowa employment law. Rules and figures change — verify the current details directly with the official Iowa sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Iowa state law.
Frequently asked questions
What is Iowa's minimum wage in 2026?
As of 2026, Iowa's minimum wage is $7.25 per hour, the same as the federal rate. Iowa has not raised it since 2008 and has no scheduled increases or inflation indexing. Always confirm the current figure with the Iowa Division of Labor.
How much must tipped workers be paid in Iowa?
Iowa employers may pay a cash wage of $4.35 per hour to employees who receive more than $30 a month in tips, taking a tip credit of up to $2.90. But the worker's cash wage plus tips must reach at least the full $7.25; if not, the employer must make up the difference.
Can an Iowa employer pay new hires less than minimum wage?
Yes. Iowa law allows an initial employment wage of $6.35 per hour for the first 90 calendar days of employment. After 90 days, the worker must receive the full $7.25 minimum wage.
Do any Iowa cities or counties have a higher minimum wage?
No. In 2017 Iowa passed House File 295, which preempts local minimum wage ordinances. Counties like Johnson, Linn, and Polk had raised local rates, but those are no longer enforceable. The statewide $7.25 minimum applies everywhere in Iowa.
Does Iowa have its own overtime law?
No. Iowa has no separate overtime statute. Overtime is governed by the federal FLSA, which requires time-and-a-half pay for hours worked over 40 in a workweek for non-exempt employees. There is no Iowa daily-overtime requirement.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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