Iowa's wage laws are shorter than those of many neighboring states, but they still contain rules that catch employers off guard, such as a 12-day limit between the end of a pay period and payday and strict limits on paycheck deductions. Wage and child labor complaints are handled by the Wage and Child Labor Unit of the Iowa Department of Inspections, Appeals and Licensing (DIAL). Here is a summary of the main rules for 2026.
EZTime labor rule alerts flag overtime and missed rest periods before payroll.
| Topic | Rule |
|---|---|
| Minimum wage | $7.25/hour (same as federal); Iowa poster |
| New-hire rate | $6.35/hour allowed for the first 90 calendar days of employment |
| Tipped employees | At least $4.35/hour cash wage if tips regularly exceed $30/month |
| Overtime | Federal rule: 1.5x after 40 hours/week; no daily overtime; FLSA |
| Meal break | No adult requirement; 30 minutes for 14- and 15-year-olds on shifts of 5+ hours |
| Rest break | Not required by state law |
| Paydays | At least monthly, semimonthly or biweekly; Iowa Code 91A |
| Final pay | By the next regular payday for the period in which the wages were earned |
| Child labor | 14-15: 28 hours/week while school is in session; DIAL rules |
Iowa's minimum wage is $7.25 per hour, matching the federal rate. Iowa Code section 91D.1 requires employers to pay the greater of the state rate or the current federal minimum, and the U.S. Department of Labor's state minimum wage table confirms that Iowa's rate equals the federal rate. No increase for January 1, 2027 has been announced by the state.
Iowa allows an initial employment rate of $6.35 per hour for an employee's first 90 calendar days with the employer. Keep in mind that the federal Fair Labor Standards Act applies to many Iowa businesses as well, and where federal law covers the employer, the stricter rule controls; the DIAL minimum wage poster reminds employers that they "must comply with the more stringent applicable law."
Restaurant, hotel, motel, inn and cabin employees who regularly receive more than $30 a month in tips can be paid a lower cash wage. Iowa caps the tip credit at 40% of the minimum wage, so the employer must pay at least $4.35 per hour in cash wages, according to both the state poster and the DOL tipped wage table. If tips do not bring an employee up to $7.25 an hour, the employer covers the shortfall.
Small retail and service businesses with annual gross sales under $300,000 are not covered by the state minimum wage law. That exemption does not apply to laundering or cleaning businesses, construction firms, hospitals and similar care institutions, schools or public agencies. Even an exempt business may still be covered by the federal FLSA, so check federal coverage before relying on it.
Iowa does not have its own overtime statute for private employers. The state minimum wage poster says plainly that "overtime is covered by the federal Fair Labor Standards Act." Under the FLSA, covered non-exempt employees must be paid at least one and one-half times their regular rate for hours over 40 in a workweek. There is no daily overtime requirement, and DIAL refers overtime complaints to the U.S. Department of Labor's Wage and Hour Division. Our FLSA overtime guide walks through regular-rate math, and the overtime calculator can check a pay period quickly.
Iowa law does not require meal or rest breaks for employees 16 and older. The DOL meal-break table lists Iowa only for its meal rule for minors, and the DOL rest-period table notes that states not listed do not require paid rest periods. If you choose to offer breaks anyway, put the policy in writing and apply it consistently, and check federal rules on whether short breaks must be paid.
DIAL's child labor page states that a half-hour break is required for employees aged 14 and 15 when their shift is five hours or longer. The break may be paid or unpaid.
None of the Iowa wage statutes and DIAL pages we reviewed requires private employers to provide paid sick leave or paid vacation. Employers that do offer leave should write the policy down carefully, because Iowa Code chapter 91A treats vacation pay owed under an employer's agreement or policy as wages. If your policy accrues vacation proportionally, the amount owed is prorated by the fraction of the year the employee actually worked. Questions about leave obligations should go to the DIAL Wage and Child Labor Unit. Federal laws such as the Family and Medical Leave Act may still apply to larger employers. If you offer paid time off voluntarily, our PTO accrual calculator can help you set a rate.
Under Iowa Code section 91A.3, employers must pay wages at least monthly, semimonthly or biweekly, on regular paydays at consistent intervals that are set in advance. A regular payday may not be more than 12 days after the end of the pay period, not counting Sundays and legal holidays. That short window matters for employers that want to close payroll late; build your schedule so the check date lands within the limit.
When employment ends, whether the employee quits, is fired or is laid off, wages earned (minus lawful deductions) are due no later than the next regular payday for the pay period in which they were earned. Earned vacation owed under your policy is included.
On each regular payday, employers must give each employee a statement showing hours worked, wages earned and deductions made. The statement can be mailed, handed out at work, delivered securely by electronic means or made available online with free printing. Employers must also provide an itemized wage statement within ten working days of an employee's request.
Deductions are tightly limited. An employer may withhold wages only when required by state or federal law or a court order, or when the employee has given written authorization for a lawful purpose that benefits the employee. Iowa bars several common deductions, including cash shortages in shared registers (with a narrow exception for managers), most breakage and customer nonpayment losses, most lost or stolen property, gratuities and most personal protective equipment.
Employees can file a wage claim with DIAL if less than one year has passed since the wages were due, the amount owed is less than $6,500 and all of the work was performed in Iowa.
Iowa's child labor law is found in Iowa Code chapter 92. DIAL publishes these hour limits for 14- and 15-year-olds:
| Period | Hours of the day | Daily limit | Weekly limit |
|---|---|---|---|
| School in session (Labor Day to June 1) | 7 a.m. to 9 p.m. | 6 hours on school days; 8 on weekends | 28 hours |
| School not in session (June 1 to Labor Day) | 7 a.m. to 11 p.m. | 8 hours | 40 hours |
For 16- and 17-year-olds, Iowa Code section 92.7A provides that they may work the same hours as an 18-year-old, and DIAL's Hiring Iowa Teens fact sheet confirms there are no state hour restrictions for minors 16 and older. Federal hour limits for 14- and 15-year-olds can be stricter than Iowa's, and federally covered employers must follow whichever rule is more protective. Some jobs are off-limits regardless of hours; the fact sheet lists examples such as roofing, excavation and logging for all minors, and most cooking and baking for workers under 16. DIAL's pages do not describe a state work permit process, so confirm current paperwork requirements with the Wage and Child Labor Unit before hiring a minor.
Iowa Code chapter 91A requires employers to keep payroll records for three calendar years. Federal law adds its own timekeeping requirements for FLSA-covered employers, including hours worked each day and each workweek. Post the Iowa minimum wage poster from DIAL where employees can see it, along with the required federal posters.
Iowa's 12-day payday window and next-payday final pay rule leave little time to chase missing punches. EZTime captures hours from a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk or biometric clocks, sends overtime and break alerts (useful for scheduling 14- and 15-year-olds), and tracks PTO and sick-leave balances under your own policy. Scheduling with shift templates and swaps keeps teen hours inside the limits, and payroll-ready Excel and PDF exports work with any payroll software. Compare the attendance clock options and pricing, starting at $2 per employee per month with a 14-day trial.
This guide is general information, not legal advice. Laws change; check the Iowa DIAL Wage and Child Labor Unit or an employment attorney. Last reviewed November 2026.
Iowa’s minimum wage is $7.25 per hour, the same as the federal rate. Employers may pay $6.35 per hour during an employee’s first 90 calendar days.
Employers must pay tipped employees who regularly receive more than $30 a month in tips at least $4.35 per hour in cash wages, and tips must bring them up to $7.25.
No. Iowa’s poster states that overtime is covered by the federal Fair Labor Standards Act, which requires 1.5 times the regular rate after 40 hours in a workweek.
Wages are due by the next regular payday for the pay period in which they were earned, whether the employee quit or was let go.
While school is in session, 14- and 15-year-olds may work up to 6 hours on school days, 8 on weekends and 28 hours a week between 7 a.m. and 9 p.m. In summer the limits rise to 8 hours a day and 40 a week, until 11 p.m.