Iowa Labor Law Guide 2026: Minimum Wage, Overtime, Breaks, and Leave
Iowa labor laws for employers in 2026: the $7.25 minimum wage with a $4.35 tipped cash wage, federal overtime after 40 hours, no adult break mandate but a 30-minute break for young teens, no paid sick leave law, the 2023 child labor changes, wage statements and deductions under the Wage Payment Collection Law, and final pay by the next regular payday.
Iowa keeps its wage and hour code short and defers to federal law on most questions. The state minimum wage matches the federal $7.25, there is no state overtime statute beyond the FLSA, and adults have no break entitlement. What Iowa does regulate closely is how wages are paid: the Wage Payment Collection Law (Iowa Code Chapter 91A) sets the pay frequency, the wage statement, the deduction rules, and the final paycheck deadline, and the Division of Labor (now part of the Department of Inspections, Appeals, and Licensing) enforces it through a wage claim process. Iowa also rewrote its child labor law in 2023.
- Iowa's minimum wage is $7.25 an hour with a $4.35 cash wage for tipped employees, one of the higher tipped floors among states at the federal rate
- Overtime follows the federal FLSA: time and a half after 40 hours in a workweek, with no daily rule
- Adults have no break entitlement; 14 and 15 year olds must get a 30-minute break on shifts of five hours or more
- Wages must be paid at least monthly, within 12 days of the end of the pay period, with a statement of hours, earnings, and deductions
- Final wages are due on the next regular payday whether the employee quit or was fired
Minimum Wage in Iowa
Iowa's minimum wage is $7.25 an hour, unchanged since 2009. Tipped employees may be paid a cash wage of $4.35 an hour with a tip credit of $2.90, which is more generous to workers than the federal $2.13 cash wage. A 2017 state law preempted the county minimum wages that Johnson, Linn, Polk, and Wapello counties had adopted, so the state rate applies everywhere.
For the tipped rules, the initial employment wage for the first 90 days, and how Iowa compares with Minnesota, Illinois, and Nebraska, see the Iowa minimum wage guide and the national minimum wage by state table.
Overtime Rules
Iowa has no state overtime law. The federal Fair Labor Standards Act governs, so non-exempt employees are owed 1.5 times their regular rate for hours over 40 in a workweek, and there is no daily overtime. The Division of Labor refers minimum wage and overtime claims to the US Department of Labor.
Worked example at the minimum wage: an employee paid $7.25 works 45 hours. Regular pay is 40 hours at $7.25, or $290.00, and overtime is 5 hours at $10.88, or $54.38, for $344.38 gross. The overtime calculator handles any rate, and the overtime pay laws in the US guide explains the federal rule.
Exempt status follows the federal tests, including the $684 per week salary threshold. Iowa has no higher state threshold.
Meal and Rest Breaks
Iowa does not require meal or rest breaks for employees 16 and older. The one state rule covers younger teens: the Division of Labor states that "a half-hour break is required for employees aged 14 and 15 years old when their shift is five hours or longer." Federal rules on paying for short breaks still apply to everyone.
| Break type | Requirement | Applies to |
|---|---|---|
| Meal period, adults | Not required | Employees 16 and over |
| Meal period, young teens | 30 minutes on any shift of 5 hours or more | Employees 14 and 15 |
| Rest breaks | Not required | All employees |
| Pay for breaks | Breaks under 20 minutes are paid work time under the FLSA; a meal period of 30 minutes or more is unpaid only if the employee is fully relieved of duty | All employees |
Most Iowa employers still schedule a 30-minute meal period and two short paid breaks on an 8-hour shift, and once a break policy is written it should be applied consistently. The break time calculator shows a sensible break pattern for any shift length, and the rest and meal break laws by state guide compares Iowa with the states that mandate breaks.
Paid Sick Leave and Other Leave
Iowa has no paid sick leave or paid family leave law, and state law preempts local ordinances on the subject.
| Leave type | Iowa rule |
|---|---|
| Paid sick leave | Not required by state law; employer policy governs |
| Federal FMLA | 12 weeks unpaid at employers with 50 or more employees |
| Pregnancy | Iowa Civil Rights Act requires up to 8 weeks of unpaid leave for pregnancy-related disability at employers with 4 or more employees |
| Jury duty | Job-protected; unpaid unless policy provides |
| Voting | Up to 3 consecutive hours of paid time to vote if the employee lacks 3 free hours while polls are open, with prior request |
| Witness duty | Job-protected for employees subpoenaed to testify |
| Military | Federal USERRA plus state protections |
See paid sick leave laws in the US for the states that mandate leave and jury duty laws in the US for court leave rules.
PTO Payout and Final Paychecks
The Wage Payment Collection Law sets the rules. The Division of Labor states plainly: "If you leave employment for any reason, you are to be paid on the next regularly scheduled payday." That deadline applies to resignations and terminations alike, and Iowa does not require same-day pay.
Vacation and PTO payout depends on the written policy or established practice. Iowa Code 91A defines wages to include vacation pay "due an employee under an agreement with the employer or under a policy of the employer," so accrued vacation promised by policy must be paid at separation, while a policy that clearly conditions payout can limit it. The PTO payout laws by state guide has the Iowa entry.
Employers must pay at least monthly, on regular paydays no more than 12 days after the end of the pay period, and give each employee a statement showing "the hours the employee worked, the wages earned by the employee, and the deductions made from that paycheck." Deductions for cash shortages, breakage, and most personal protective equipment are prohibited; taxes, garnishments, and employee-authorized benefit deductions are allowed. The Division accepts wage claims of up to $6,500, and an employer that intentionally fails to pay owes the wages plus liquidated damages, costs, and attorney fees under Iowa Code 91A.8.
Exempt vs Non-Exempt Employees
Iowa applies the federal salary basis, salary level, and duties tests with no state additions, so the $684 per week threshold and the executive, administrative, professional, computer, and outside sales categories decide exempt status. Our exempt vs non-exempt employees guide walks through the tests and the FLSA exemption flowchart helps classify a role.
Child Labor Rules
Iowa's 2023 child labor law (Senate File 542, effective July 1, 2023) expanded the hours 14 and 15 year olds may work under state law. The Division of Labor states the minimum working age is 14, and that a work permit must be on file for workers under 16.
| Age group | Hours and time limits under state law | Other rules |
|---|---|---|
| 14 and 15, school in session | Up to 6 hours on a school day and 28 hours a week; 7 AM to 9 PM | Work permit on file; 30-minute break on shifts of 5 hours or more |
| 14 and 15, school not in session | 8 hours a day and 40 hours a week; 7 AM to 11 PM in summer | |
| 16 and 17 | No state hour limits; may serve alcohol in restaurants in limited circumstances | Hazardous occupation rules apply, with state waivers for approved training programs |
The US Department of Labor told Iowa that parts of the 2023 law conflict with federal law, and FLSA-covered employers must still follow the stricter federal limits for 14 and 15 year olds: no more than 3 hours on a school day, 18 hours in a school week, and no work after 7 PM during the school year. See child labor laws in the US.
Other Iowa Employment Rules
- Local preemption. Cities and counties may not set their own minimum wage, leave, or scheduling rules.
- Drug testing. Iowa Code 730.5 allows testing under a written policy with specific procedural protections, including confirmation testing and a chance to explain results.
- E-Verify. Not required by state law.
- Payroll taxes. Iowa moved to a flat 3.8 percent individual income tax, and the 2026 unemployment insurance wage base is $20,400 with employer rates from 0 to 5.4 percent.
- Non-competes. Enforceable if reasonable; a 2024 law limits non-competes for mental health professionals.
- Lactation. Federal PUMP Act break and space rules apply.
Hiring, Termination, and Record-Keeping
Iowa is an at-will state with exceptions for discrimination, retaliation, and public policy. The Iowa Civil Rights Act covers employers with 4 or more employees and protects race, creed, color, sex, sexual orientation, gender identity, national origin, religion, age, disability, and pregnancy. Employers may not ask about arrest records that did not lead to conviction in most contexts, and background checks must follow the federal Fair Credit Reporting Act.
Keep payroll records showing hours, wages, and deductions for at least 3 years under the FLSA and work permits for minors under 16 on file. Post the state and federal minimum wage notices and the Iowa child labor poster where minors work. Since the wage statement must show hours worked every payday, a time card calculator that totals hours per pay period and a written timekeeping policy keep the 91A records in order.
Frequently Asked Questions
Is Iowa an at-will state? Yes, with exceptions for discrimination, retaliation, and public policy.
Does Iowa require lunch breaks? Not for employees 16 and older. Workers aged 14 and 15 must get a 30-minute break on any shift of five hours or more.
When is overtime paid in Iowa? After 40 hours in a workweek under the federal FLSA. Iowa has no daily overtime rule.
When is the final paycheck due in Iowa? On the next regularly scheduled payday, whether the employee quit or was terminated.
Does Iowa have paid sick leave? No. Iowa has no paid sick leave or paid family leave mandate, and local ordinances are preempted.
How many hours can a minor work in Iowa? State law lets 14 and 15 year olds work up to 6 hours on a school day and 28 hours a school week, but FLSA-covered employers must follow the stricter federal limits of 3 hours on a school day and 18 in a school week. Ages 16 and 17 have no state hour cap.
How often must Iowa employers pay? At least monthly, on a regular payday no more than 12 days after the end of the pay period.
Does Iowa pay out unused PTO? Vacation pay promised by an employer policy or agreement counts as wages and must be paid at separation; a policy can limit or condition payout if it says so clearly.
Sources
- Iowa Department of Inspections, Appeals, and Licensing: Wage claims FAQ
- Iowa Division of Labor: Child labor
- Iowa Code Chapter 91A: Wage Payment Collection
- US Department of Labor: State Payday Requirements
- US Department of Labor: State Minimum Wage Laws
Reviewed September 2026
Laws change through legislation and agency guidance. The 2023 child labor hour limits and the work permit process, the voting leave rule, the pregnancy leave provision of the Iowa Civil Rights Act, the drug testing statute, the 2017 local preemption law, the tax and unemployment figures, and the record retention period are stated from general knowledge and the prior version of this guide rather than a fetched agency page, and should be confirmed with the Iowa Division of Labor before you rely on them.
Hours on Every Wage Statement
HiveDesk tracks hours automatically and builds pay-period timesheets, so the hours-worked line Iowa requires on every wage statement comes from real data. $5/user/month, 14-day free trial.