The minimum wage in Iowa is $7.25 per hour, the same as the federal minimum wage. Iowa has not raised its state minimum wage above the federal floor since 2008, making it one of roughly 20 states that match or defer to the federal rate. If you work in Iowa and earn hourly wages, this is the legal baseline your employer must pay for most jobs.
How Iowa’s Rate Compares to Federal Law
Iowa’s minimum wage is tied directly to the federal minimum wage of $7.25 per hour, which has been unchanged since July 2009. Iowa Code Section 91D.1 sets the state rate, and because that rate equals the federal floor, workers in Iowa receive no additional state-level bump. Many neighboring and coastal states have passed their own increases well above $7.25, but Iowa has not followed suit.
A full-time worker earning $7.25 per hour and working 40 hours a week brings home roughly $290 before taxes, or about $15,080 annually. That figure falls below the federal poverty guideline for a household of two.
Tipped Employees
Iowa follows the federal tipped-wage rules. Employers can pay tipped workers a cash wage as low as $4.35 per hour, provided the employee’s tips bring total hourly earnings to at least $7.25. If tips fall short in any pay period, the employer is legally required to make up the difference so the worker still receives the full minimum wage.
Training Wage for New Employees
Iowa law allows employers to pay a lower “initial employment wage” during a worker’s first 90 calendar days on the job. This training-period rate is $6.35 per hour. Once an employee passes the 90-day mark with the same employer, the standard $7.25 rate applies. The training wage is optional for employers, not mandatory. Many choose to start workers at or above $7.25 from day one, especially in a competitive labor market.
Who Is Exempt
Iowa’s minimum wage law incorporates the same exemptions found in the federal Fair Labor Standards Act. That means certain categories of workers are not guaranteed the $7.25 floor. The most common exemptions include:
- Some agricultural workers: Farmworkers employed on small farms or in certain seasonal roles may fall outside minimum wage protections.
- Student learners: Students employed part-time through a vocational education program may be paid a sub-minimum rate under a special certificate.
- Workers with disabilities: Employers holding a federal Section 14(c) certificate can pay below the standard minimum, though this practice has faced growing scrutiny nationwide.
- Executive, administrative, and professional employees: Salaried workers who meet specific duties tests and earn above a salary threshold are exempt from both minimum wage and overtime rules.
No Local Minimums Allowed
Iowa law prohibits cities and counties from setting their own minimum wage rates. In 2017, the state enacted HF 295, which prevents local governments from passing or enforcing wage ordinances that exceed state or federal law. The bill was retroactive, immediately voiding local minimum wage increases that several Iowa counties had already adopted. Johnson County, for example, had raised its local minimum to $10.10 in 2015, but that ordinance became unenforceable the day the governor signed HF 295.
This means no matter where you work in Iowa, the wage floor is $7.25 statewide. There is no city or county that can legally require a higher rate.
What Employers Actually Pay
While $7.25 is the legal minimum, many Iowa employers pay above it in practice. Restaurants, retailers, and warehouses in the state commonly advertise starting wages of $12 to $16 per hour to attract workers, particularly since the tight labor market of the early 2020s. The legal minimum sets a floor, but market conditions often push actual starting pay well above that number. If you are job hunting in Iowa, you will likely find most advertised hourly positions offering more than $7.25, though the law does not require it.
Overtime Rules
Iowa does not have its own overtime law, so federal rules apply. Non-exempt hourly workers must receive 1.5 times their regular rate for any hours worked beyond 40 in a single workweek. For someone earning exactly $7.25, overtime pay would be $10.88 per hour. Your employer cannot average hours across two weeks to avoid paying overtime. Each workweek stands on its own.