Minimum Wage in Iowa – weekly, monthly, annually

In Iowa, the minimum hourly wage equals what is set at the federal government level of $7.25 an hour.

The minimum wage regulations apply to most wage earners in Iowa, but for service establishments and small retail businesses grossing less than $300k annually, there are no requirements to pay their workers the minimum hourly wage.

Most administrative and supervisory employees receive salaries and are also not covered by the minimum wage law.

Employers are allowed to pay new workers under the age of 18 an initial employment compensation of $6.35 per hour, but only for the first 90 days of employment (as a training period).

In Iowa, employees receiving gratuities must receive at least 60% ($4.35) of the state’s minimum hourly wage as long as their income for every worked hour meets at least the minimum wage requirements. If not, the employer must compensate.

Several Iowa counties and cities have increased minimum wage standards, but these are more symbolic and non-binding legally. In Johnson County, the minimum wage rate is 10.25 per hour; in Linn City, 10.25; in Polk City, 10.75; in Wapello, 10.10 per hour.

There are more categories of workers that are exempt from earning Iowa’s minimum wage. Some high school or college students, for example, may earn 85% ($6.16) of the minimum hourly rate, tipped workers may earn less, and there are more exempt categories.

Iowa Paycheck Calculator

Our Iowa Paycheck Calculator helps you to transform hourly earnings into weekly, monthly, and annual wages.

How to use our Iowa paycheck calculator

  1. Enter your hourly pay.
  2. Enter the number of hours you work per week.
  3. Our paycheck calculator translates your hourly pay into earnings per week, month, or year.

How does the Iowa paycheck calculator work?

For most workers with regular jobs, understanding their paychecks and earnings is not so complicated. Periodically, usually every week, biweekly, or once a month, they’ll receive their paychecks, and when the year comes to an end, they’ll also get their tax forms.

For these employees, those who get periodical paychecks, understanding what they earn isn’t so complicated. Things get different, though, for workers that receive an hourly wage. For them, it may get more complicated to figure out how their hourly pay compares to a monthly, weekly, or annual income.

To help these hourly workers, we have created this useful paycheck calculator. It is a great tool to let you find out how your hourly wages relate to periodical earnings, for example, per year, month, or week.

Time period Equation
Annual income = hourly wage times
40 hours times 52 weeks
Monthly income = annual wage divided by 12 months
Weekly income = hourly wage times 40 hours

These results are generated by multiplying your base hourly salary by the number of hours, weeks, or months you work yearly, assuming that you’re working 40 hours per week.

Minimum Wage in Iowa

So in Iowa, the minimum wage employers are required to pay their workers is $7.25 per hour. That translates to $58 a day, $290 a week (at 40 work hours), $1257 a month, and $15,080 a year.

As said earlier, not all Iowa workers will be paid the state’s minimum hourly rate of $7.25. Some employers are not required to pay their employees the state minimum wage rate. This applies to some employees who receive gratuities, some high school or college students that have a part-time job, and there are more groups that are exempt.

The rules are pretty strict. Iowa’s Division of Labor can bring action against an employer who violates Iowa’s minimum wage law, and courts
may order back wage payments and impose severe penalties. Employers cannot discharge or discriminate against employees for filing complaints or taking part in proceedings under Iowa’s minimum wage laws.

Minimum wage exemptions in Iowa

Iowa’s minimum wage standards apply to most employees. As said earlier, there are categories of employees that are particularly exempt under federal and state law. Let’s take a closer look, but note that the following is not a complete overview of exempt categories:

  • Agricultural workers, student nurses, and interns may hold exempt status.
  • An hourly training rate of $6.16 may be paid to workers during the first 90 days of employment.
  • Full-time enrolled students (college or high school) may get paid 85% of Iowa’s minimum hourly rate (so $6.16 per hour), but only when they’re employed for 20 hours a week max at a university or college in a work-study program.
  • Employees that earn at least $30 in gratuities each month can be paid $4.35 per hour. However, the employer must compensate the worker for the difference if the combined earnings do not reach the $7.25 level.
  • Small retail businesses and service establishments grossing under $300k a year don’t have to pay their workers the minimum hourly rate.

Iowa overtime wage

Overtime in Iowa is covered by the U.S. Fair Labor Standards Act (FLSA). If an employee works more than 40 hours in a week, the employer is required to pay one-and-a-half times (150%) the regular pay rate for those overtime hours. In Iowa, there’s no limit on overtime hours.

Overtime hours cannot be calculated on a day. If an employee works more than eight hours on any day, there’s no overtime pay requirement for that day. Overtime hours are registered by the week. Some workers are exempt from overtime regulations, such as outside salespeople and some commercial drivers.

Iowa law requires all employers and businesses to display minimum wage posters in prominent and highly visible places to allow their employees to learn all about the state’s minimum wage rates and their rights under federal and state regulations and laws.

What is work time?

The general rule is that work time includes all hours employees carry out duties and activities on behalf of employers who initiate and control these activities.

Work time also includes hours employees spend on relevant training and education, and when the job requires traveling, these hours also are considered work time. The time needed for commuting between work and home doesn’t qualify as work time.

In Iowa, there are no laws that require meal breaks for adult workers, but for minors younger than 16 years of age, employers need to provide a 30-minute meal break if they work shifts of five hours or longer.

Please note that this post doesn’t contain legal advice. If you have any questions about Iowa’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.