Iowa

$7.25 / hour

The current Iowa minimum wage is $7.25 per hour. If a tipped employee makes $30 per month or more in tips, the employer may pay as little as $4.35 per hour and must pay the difference if wages plus tips do not average at least $7.25 per hour in a workweek.

Checked

2026-08-10

Iowa's official minimum-wage poster states that overtime is covered by the federal Fair Labor Standards Act and directs overtime questions to the U.S. Department of Labor.

Checked

2026-08-10

Iowa employers must report wages and pay unemployment tax on employees; employers generally withhold state and federal income taxes and Social Security and Medicare for employees but not for properly classified independent contractors.

Checked

2026-08-10

An Iowa employer shall pay wages at least in monthly, semimonthly, or biweekly installments on regular paydays designated in advance at consistent intervals; absent a maintained written variation agreement, payday is no more than 12 days excluding Sundays and legal holidays after the earning period ends.

Checked

2026-08-10

When an employee leaves employment for any reason, Iowa requires payment on the next regularly scheduled payday.

Checked

2026-08-10

On every regular payday, an Iowa employer shall provide a statement showing the employee's hours worked, wages earned, and deductions from that paycheck through an approved delivery or electronic-access method.

Checked

2026-08-10

Iowa permits taxes, garnishments, and deductions for a lawful purpose benefiting the employee when the employee gives written authorization; common-till shortages, breakage, bad checks, customer-credit defaults, and most personal protective equipment cannot be deducted except under limited statutory conditions.

Checked

2026-08-10

An Iowa employer may require direct deposit for an employee hired after July 1, 2005 only when account costs do not reduce pay below minimum wage, no direct-deposit fee is charged, and no union contract prohibits it; payroll-card payment requires written agreement, timely availability, and fee-free access to all wages.

Effective

2005-07-01

Checked

2026-08-10

Iowa law requires a half-hour break for employees aged 14 and 15 when their shift is five hours or longer; the break may be paid or unpaid.

Checked

2026-08-10

An Iowa employee is entitled to compensation for travel between worksites when the travel occurs during working hours; qualifying no-work commute time on optional employer-provided transportation is not compensable unless an agreement provides otherwise.

Checked

2026-08-10

For most Iowa at-will employees, an employer may change the employee's work schedule, place of work, or job description without advance notice.

Checked

2026-08-10

Expenses authorized by an Iowa employer and incurred by an employee must be reimbursed in advance or no later than 30 days after the employee submits an expense claim; a partial or full refusal requires written justification within that period.

Checked

2026-08-10

For wages determined on a commission basis, an Iowa employer and employee may agree to a credit against wages, but the employer must pay the difference between credits and commissions actually earned at regular intervals no more than 12 months apart.

Checked

2026-08-10

3.8%

Iowa supplemental wages include a bonus, overtime pay, commission, or other special payment made in addition to regular wages; if federal tax is withheld on a flat-rate basis, Iowa income tax is withheld at 3.8 percent.

Effective

2026-01-01

Checked

2026-08-10

Iowa defines wages to include severance payments that are due an employee under an agreement with the employer or under an employer policy.

Checked

2026-08-10

Iowa law does not generally require employers to provide holiday pay; an employer must follow its own applicable policy, practice, or contract.

Checked

2026-08-10

Federal-aid Iowa DOT construction contracts may include FHWA-1273 provisions governing Davis-Bacon wage rates and fringe benefits, and covered laborers and mechanics must receive at least the wage decision rate for their work.

Checked

2026-08-10

Iowa law does not generally require employers to provide sick time; when a policy, practice, or contract provides the benefit, the employer must follow it.

Checked

2026-08-10

No general paid family medical leave requirement for private employers was located in IA's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

An Iowa employer shall treat an employee who adopts a child up to six years old in the same manner as an employee who is the biological parent of a newborn for employment policies, benefits, and protections during the first year of the adoption, except disability leave still requires a qualifying disability.

Effective

2025-07-01

Checked

2026-08-10

3.8%

Every employer maintaining an office or transacting business in Iowa that must withhold federal income tax for services performed in Iowa must withhold Iowa individual income tax; the 2026 withholding materials use a 3.8 percent rate.

Effective

2026-01-01

Checked

2026-08-10

Within 15 days, each Iowa new hire and rehire must complete and sign Form IA W-4; if the employee does not complete the form, the employer withholds using an allowance amount of zero.

Checked

2026-08-10

3.8%

Iowa defines supplemental wages to include bonuses, overtime, commissions, and other special payments; when federal tax is withheld at a flat rate, Iowa withholding is 3.8 percent, while combined payments use the regular tables or formulas.

Effective

2026-01-01

Checked

2026-08-10

Under the Iowa-Illinois reciprocal agreement, wages of an Illinois resident working in Iowa are taxable only to Illinois, and the employee files Iowa Form 44-016 with the employer to claim exemption from Iowa withholding.

Checked

2026-08-10

0%

The Iowa Department of Revenue states that there are no local taxable wages and no local tax withheld in Iowa, so the corresponding W-2/1099 RS record positions are filled with zeros.

Checked

2026-08-10

1% · wage base $20,400

Iowa employers pay unemployment contributions on each employee's wages up to the 2026 taxable wage base of $20,400; the 2026 new-employer rate is 1.0 percent for nonconstruction and 5.4 percent for construction employers.

Effective

2026-01-01

Checked

2026-08-10

No general disability insurance requirement for private employers was located in IA's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

Iowa law requires most employers either to carry workers' compensation liability insurance or to register as a self-insured employer.

Checked

2026-08-10

Iowa withholding is filed quarterly for less than $6,000 per year, monthly for $6,000 through $120,000 per year, and semimonthly for more than $120,000 per year; semimonthly payments cover days 1-15 by the 25th and days 16-month-end by the 10th of the next month.

Checked

2026-08-10

Every Iowa employer registered for withholding must file for each applicable period during the calendar year even when no compensation was paid; quarterly filers submit each quarter, while monthly and semimonthly filers also submit a quarterly return.

Checked

2026-08-10

Iowa businesses that issue W-2s or 1099s containing Iowa withholding must electronically file them with the Department by February 15; W-2s must be furnished to employees by the last day of January.

Checked

2026-08-10

An employer doing business in Iowa that hires or rehires an employee must submit Centralized Employee Registry reporting to Iowa within 15 days of the hire or rehire date.

Checked

2026-08-10

Iowa exempts disposable earnings to the extent provided by the federal Consumer Credit Protection Act and limits the annual amount garnished per judgment creditor by expected earnings; an employer may not withhold more than law permits, misdirect garnished wages, or discharge an employee because earnings were garnished for debt.

Checked

2026-08-10

An Iowa employer with four or more employees may not discriminate based on age, race, creed, color, sex, sexual orientation, national origin, religion, or disability by paying less than employees in the same establishment for equal work requiring equal skill, effort, and responsibility under similar working conditions.

Checked

2026-08-10

No general pay transparency requirement for private employers was located in IA's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

No general salary history requirement for private employers was located in IA's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

5%

When an Iowa employer intentionally fails to pay wages or reimburse authorized expenses, the employer is liable for the unpaid amount plus liquidated damages, court costs, and usual and necessary attorney fees.

Checked

2026-08-10

Iowa law requires displaying the minimum-wage poster where it can easily be seen by all employees.

Effective

2025-03-13

Checked

2026-08-10

Iowa workers ages 14 and 15 are subject to daily, weekly, and time-of-day work restrictions and must receive a 30-minute break when their shift is five hours or longer; when federal and state rules differ, covered employers follow the more protective provision.

Checked

2026-08-10

The State of Iowa participates in E-Verify and verifies all newly hired state employees through the system within the required timeframe to confirm employment authorization.

Checked

2026-08-10

Within 30 days after wages are first paid to employees working in Iowa or an existing business is acquired, employers must register a UI tax account with Iowa Workforce Development through myIowaUI.

Checked

2026-08-10

Iowa employers must maintain accurate payroll records including employee name, Social Security number, days and calendar weeks worked, and earnings for each period, and retain them for at least five years after the calendar year in which wages were paid.

Checked

2026-08-10

1%

An Iowa reimbursable employer must pay a Notice of Reimbursable Benefit Charges within 30 days; after that, interest accrues at 1 percent per month on the remaining balance, calculated at one-thirtieth of 1 percent per day.

Checked

2026-08-10

The Iowa labor director shall not accept an administrative complaint for unpaid wages and liquidated damages after one year from the date the wages became due and payable.

Checked

2026-08-10