Minimum Wage In Iowa

The minimum wage in Iowa is $7.25 an hour. This is the federal minimum wage, which means that Iowa employers are required to pay workers at least this amount per hour.

In addition to federal minimum wage laws, many states have rules regarding how much an employer can pay employees and how often they must be paid. In addition to state law requirements, some local governments have enacted minimum wage ordinances that set higher base wages for workers in their jurisdictions than what is required by federal or state law.

What Is the Current Minimum Wage in Iowa?

The minimum wage in Iowa is $7.25 per hour. This is the same as the federal minimum wage.

The minimum wage is a base rate of pay set by the government that employers must pay their employees. This rate varies by state but typically ranges between $7.25 and $16.10 per hour, depending on where you live or work. Some states have different rates for certain professions or industries as well.

Still, generally speaking, this is the amount that most workers should expect to earn when starting a new job with no experience or qualifications under their belt whatsoever.

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Why Does the Minimum Wage Exist?

The purpose of minimum wage laws is to protect low-wage workers from exploitation by their employers. Minimum wages provide some economic security for workers who might otherwise be vulnerable to exploitation by unscrupulous employers who would take advantage of them by paying below-market wages or requiring excessive work hours without additional compensation.

The FLSA sets a federal minimum wage for all states and territories, but state laws may set higher minimum wages as long as they meet or exceed the federal standard. The federal government does not set the maximum amount of hours employers can require from their employees, but many states have such limits and require overtime pay for work beyond those limits.

What is the cost of living in Iowa in 2023?

The cost of living in Iowa is about 10% lower than the national average. Cost of living measures how much it costs to live in a specific city or country. It compares the cost of living between different locations based on the prices of goods, services, and other factors such as expenses, salaries, and currency exchange rates. Individuals often use the measure when deciding where to live based on the quality of life, safety, and career opportunities.

According to the Economic Policy Institute Family Budget Calculator, a single individual requires $3,061 monthly to maintain a modest standard of living in Iowa which translates to $36,728 annually.

The EPI’s family budget estimates include food, housing, transportation, and health care costs. The data is collected by surveying state and county agencies on the cost of living in each area.

What are the different types of Minimum Wages in Iowa?

Iowa has several different types of minimum wage laws. These laws are designed to protect workers and ensure that they are paid a fair wage for the work that they do.

Standard Minimum Wage

The standard minimum wage is the lowest amount that an employer can pay their employees for an hour of work. The standard minimum wage in Iowa is $7.25 per hour. This means that if you are paid less than $7.25 per hour, your employer may be violating Iowa’s Fair Labor Standards Act (FLSA). The FLSA is a federal law that applies to all 50 states and determines which state laws on minimum wage are superseded by the FLSA.

Under 20 Minimum Wage

If you are under 20 years old and working at least 40 hours per week, you cannot be paid less than $4.25 per hour in Iowa. If you are under 18 years old and working at least 28 hours per week, you cannot be paid less than $3.58 per hour in Iowa. This means that if you are working at least 28 hours per week and your employer pays you less than $3.58 per hour or $4.25 per hour depending on your age, they may be violating Iowa’s Employment of Minors Law (EML).

Tipped Minimum Wage ($2.90)

In Iowa, employers are not required to pay tipped employees a full minimum wage. Instead, Iowa employers may pay tipped employees $2.90 per hour and count tips as part of their wages, as long as the employee earns at least $7.25 per hour in tips by the end of their shift. This is known as a “tip credit.” Employers may not claim this tip credit if they pay employees a flat rate of less than $7.50 per hour or if they reduce their employees’ wages to allow them to meet this requirement.

Student Minimum Wage ($6.16)

Iowa’s student minimum wage law allows employers to pay students who work during school vacations, holidays, or summer breaks no less than 85% of Iowa’s non-tipped minimum wage rate currently $6.16. This law does not apply if an employer is paying students for actual employment duties or when an employee is required to be present on the premises during school hours.

Overtime in Iowa 

Overtime is time worked above 40 hours per week or eight hours per day. For each hour of overtime, you must be paid 1 1/2 times your regular hourly rate of pay; $10.88. There is no limit to the number of hours an employer may require an employee to work, provided that all applicable laws are followed and that the employee receives overtime compensation at the required rate of pay.


Over the last several years, the minimum wage has increased at a rapid pace. There is much confusion about the minimum wage and what impact it will have on employers in Iowa. Some employers are concerned about the financial strain that a higher minimum wage will have on their operations. On the other hand, some critics suggest that a higher minimum wage may not be good for business and could lead to job losses in Iowa.

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