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Help restaurant and franchise owners hire, pay, and retain your hourly team.

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HOURLY WAGE INDEX

Let’s talk wages in Iowa

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$7.25

What is the minimum wage in Iowa?

What is the minimum wage in Iowa? The current Iowa minimum wage is $7.25 per hour. This is the same as the federal minimum wage. This is for all employees, except for tipped employees. Tipped employees are only required to be paid $2.13 per hour, but if their tips do not bring their total earnings up to the Iowa minimum wage, the employer must make up the difference.

The minimum wage in Iowa has not increased since 2009. However, there have been several proposals to increase the minimum wage, but none of them have been successful.

Here are some of the exceptions to the minimum wage law in Iowa:

  • Learners: Employers may pay learners a sub-minimum wage of $4.25 per hour for the first 90 consecutive calendar days after the learner is initially employed by the employer.
  • Certain workers with physical or mental limitations: Employers may pay sub-minimum wages to workers with physical or mental limitations that limit their ability to do the job.
  • Employees under 18 years old: Employers may pay employees under 18 years old a sub-minimum wage of $4.25 per hour for the first 90 consecutive calendar days after the employee is initially employed by the employer.

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$27.12

What is the average wage in Iowa?

The average wage in Iowa is $27.12 per hour. 

However, wages vary greatly depending on the type of job and the location. For example, jobs in Des Moines tend to pay more than jobs in other parts of the state. And, jobs in the construction and manufacturing industries tend to pay more than jobs in the retail and service industries.

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$30.61

What is the living wage in Iowa?

A guide to hourly labor laws in Iowa

  • Standard Minimum Wage: $7.25 (Iowa Code § 91D.1) (29 US Code § 206).
  • Tipped Minimum Wage: $4.35, totaling at least minimum wage after tips (Iowa Code § 91D.1) (DoL Table).
  • Overtime: Hours exceeding 40 in a fixed week are overtime and subject to 1.5 times the regular rate (29 US Code § 207) (DoL). 
  • Meal Breaks:
    • 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).
  • Rest Breaks: No Iowa state or federal law requiring rest breaks. However, breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
  • Wage Deductions: Only deductions required by law or authorized in writing by the employee. Third-party deductions benefitting the employer may not reduce the wage below the applicable minimum (Iowa Code § 91A.5) (29 C.F.R. § 4.168) (29 US Code § 203). 
  • Final Paychecks: Paid on the next regular payday (Iowa Code § 91A.4).
  • Wage Payment Frequency: At least monthly, semimonthly, or biweekly on regular, designated paydays of consistent intervals (Iowa Code § 91A.3).
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No state/federal law. For eligible employees, the FMLA provides up to 12 unpaid weeks in a one-year period for a qualifying medical condition (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • 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). 
  • Maximum Daily and Weekly Hours for Children 16 and 17: No state law. Federal law does not restrict 16- and 17-year-olds’ working hours in non-hazardous occupations (DoL). 

Frequently asked questions

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?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:


  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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