Iowa Wage and Hour Laws

Iowa workers are protected by both federal and state laws regarding wage and hour requirements. The primary federal law which governs wages and hours is the Fair Labor Standards Act. Iowa labor laws also address wage and hour requirements.

Minimum Wage and Overtime in Iowa

As of 2015, the current minimum wage in Iowa for non-exempt employees is $7.25 per hour. Examples of exempt employees include tipped employees and new employees in training. If you regularly make more than $30 per month in tips, the employer may pay as little as $4.35 per hour. However, if the tips received do not average at least $7.25 per hour, then the employer must pay the difference. New hires are also exempt during the first 90 days of employment and may earn as little as $6.35 per hour. The rationale is that the employee is in "training" and not yet able to take on the full responsibilities of the job.

Iowa does not have a provision for overtime. However, under federal law, employers are required to pay non-exempt employees 1.5 times the usual hourly rate for any work in excess of 40 hours per week.

Pay Day Requirements in Oklahoma

Any predictable and reliable pay schedule is permitted as long as employees are paid at least monthly and no later than 12 days (excluding Sundays and legal holidays) from the end of the period when the wages were earned. Employees working solely for commission are exempt.

Iowa Wage and Hour Laws

The following table outlines wage and hour laws in Iowa.

Code Sections

IOWA CODE §§ 91A.3, 91A.8, 91A.12, 91D.1,

Fair Labor Standards Act

Minimum Wage

$7.25 per hour

For employees regularly receiving more than $30 per month in tips, a credit against the minimum wage not exceeding 40% may be taken by the employer so long as the value of those items brings the pay up to the state minimum.

Deductions may be made for uniforms if the uniform is generic clothing such has a white blouse or black pants but not if the uniform identifies the business. Examples include t-shirts with a company logo or in company colors.

Overtime Pay

Under federal law, employers are required to pay non-exempt employees 1.5 times the employee’s regular hourly rate for any hours worked over 40 during any single workweek.

Pay Day Requirements Any predictable and reliable pay schedule is permitted as long as employees get paid at least monthly and no later than 12 days (excluding Sundays and legal holidays) from the end of the period when the wages were earned. Employees working solely for commission are exempt.
Persons Not Covered by State Minimum Wage Laws

Tipped employees such as restaurant and hotel workers regularly earning more than $30 per month in tips can be paid as little as $4.35 per hour. The tips, however, must bring the employee's pay to at least the state minimum wage.

New hires during their first 90 days of employment may earn an "initial employment wage" of as little as $6.35 per hour.

Penalties

An employee who does not receive proper wages or reimbursement for expenses may seek damages and recover the unpaid wages or expenses as well as liquidated damages and reasonable court costs and attorney's fees.

The labor commissioner may also seek civil penalties in the amount of $500 per pay period for each violation.

Enforcement

An employee may file a Claim for Wages Form with the Iowa Division of Labor Services regarding unpaid or underpaid wages.

An action may be brought against an employer by the employee or the labor commissioner.

Iowa Wage and Hour Laws: Related Resources

State labor laws can be confusing and it may be difficult to figure out what your employment rights are. If you would like legal assistance with an employment matter, you can contact an Iowa employment attorney. You can also visit FindLaw’s sections on Wages & Benefits: Overview, Fair Wages FAQ, and the federal Fair Labor Standards Act (FLSA) for more articles and information on this topic.

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