The Iowa Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

$7.25 per hour for most employees (as of 2026)

Compliance Note: Iowa sets its minimum wage by statute to match the federal rate. Local cities and counties in Iowa generally do not set their own higher minimum wage rates due to state preemption laws.

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Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips. 

$4.35 for most tipped employees

Compliance Note: Employers must ensure that the employee’s tips plus the cash wage of $4.35 equal at least the full minimum wage of $7.25 per hour. If they do not, the employer must pay the difference.

Iowa does not have its own state overtime laws. Employers must follow the federal Fair Labor Standards Act (FLSA), which requires non-exempt employees to receive paid time and a half (1.5x) their regular rate of pay for every hour worked over 40 hours within a workweek

Adults (16+): Iowa has no laws requiring an employer to provide a meal period or breaks to employees 16 years of age or older.

• Federal Rule: The FLSA does not require breaks. If an employer chooses to provide them:

  • Rest Breaks (5–20 min): Must be paid.

  • Meal Periods (30+ min): May be unpaid if the employee is completely relieved of all duties.

Minors (Under 16): Iowa law requires that minors under age 16 who work 5 or more consecutive hours must be granted a meal period of at least 30 minutes.

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Vacation Leave: Iowa law does not require private employers to provide paid or unpaid vacation leave. Employers may offer vacation leave at their discretion based on company policy.

Paid Sick Leave: Iowa does not require private employers to provide paid or unpaid sick leave. However, eligible employers must comply with the federal Family and Medical Leave Act (FMLA) for unpaid, job-protected leave.

Holidays: Iowa state law does not require private employers to provide paid or unpaid holiday leave.

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Important Update: Iowa no longer requires child labor work permits as of July 1, 2023 (Senate File 542).

Minors Ages 14–15

• Federal vs. State Conflict: Iowa state law allows 14 and 15-year-olds to work until 9:00 PM during the school year. However, Federal Law (FLSA) restricts them to 7:00 PM. Most employers are covered by the FLSA and must follow the stricter federal standard to avoid fines.

• Federal Standard (Stricter):

  • School Days: Max 3 hours per day.

  • School Weeks: Max 18 hours per week.

  • Non-School Days: Max 8 hours per day.

  • Non-School Weeks: Max 40 hours per week.

  • Time: 7:00 AM – 7:00 PM (Extended to 9:00 PM from June 1 through Labor Day).

• Breaks: Must receive a 30-minute break if working 5+ hours.

Minors Ages 16–17

• Hours: Under new Iowa law, 16 and 17-year-olds may generally work the same hours as adults.

• Restrictions: They are prohibited from working in hazardous occupations (e.g., excavation, roofing) unless part of a specific state-approved work-based learning program.

Hiring (Anti-Discrimination) The Iowa Civil Rights Act (ICRA) prohibits employers with four or more employees from discriminating during the hiring process based on:

• Race

• Creed (Distinct from religion under Iowa law)

• Color

• Sex (including pregnancy)

• Sexual Orientation

• National Origin

• Religion

• Age (18 and older)

• Disability

Firing
Iowa employers have the right to terminate employees at will for nearly any reason and no reason at all provided the reason is not unlawful.