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Iowa Labor Laws


Posted by Maya

Whether you are an employer or an employee, you owe it to yourself to be familiar with the labor laws in your area. In some states, federal laws set by the US Department of Labor are the only laws governing labor, and in other states, the state government has legislated labor regulations that go beyond the federal guidelines. Right now, let’s take a look at labor laws in the state of Iowa.

In Iowa, the minimum wage is the same as the state minimum wage - $5.15 per hour.

Employees who earn tips can be paid less than minimum wage, as long as their tips plus their base pay adds up to at least $5.15 per hour. If it does not, employees must make up the difference. Overtime pay, which should be paid out at the rate of 1 ½ times the normal rate of pay, is due to anyone who works more than 40 hours on seven consecutive days.

When it comes to holiday pay, vacation pay, or sick pay, Iowa does not require employers to provide these benefits. These are considered bonuses and are left up to the discretion of the employer. The only law that does apply is that if employers offer these benefits to some employees, then they have to offer them to all employees who have the same rank (this rule does not apply to part-time, freelance, or temp workers). Employers can change their company’s benefits policies at any time, as long as employees are notified in writing.

Employers can terminate employees at any time, for any reason aside from discrimination based on color, religion, gender, or disability. If you believe you have been the victim of discrimination, you can contact the Iowa Department of Labor to issue a complaint.

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