The minimum wage in Iowa is $7.25 per hour, the same as the federal minimum wage. Tipped employees must be paid at least $4.35 per hour, but employers must ensure wages and tips combined equal at least the minimum wage. Employers may pay a sub-minimum wage of $4.25 per hour to learners and employees under 18 for the first 90 consecutive calendar days of employment.
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Iowa is $26.21. Wages vary by occupation, industry, and location.
A guide to hourly labor laws in Iowa
- Adults: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
- Children under 16: Employers must provide at least a 30-minute meal break after five consecutive hours (Iowa Code § 92.7).
- School session: Up to 6 hours per day and 28 hours per week.
- Non-school session: Up to eight hours per day and 40 hours per week.
- Hours: No work between 9 p.m. and 7 a.m. except between June 1 and Labor Day, when hours are extended until 11 p.m. (Iowa Code § 92.7).
No state law. Federal law does not restrict 16- and 17-year-olds' working hours in non-hazardous occupations (DoL).
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
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