Iowa minimum wage rate is $7.25 per hour in 2023. Workers receive a lower minimum wage in Iowa that exceeds the Federal Minimum Wage of $7.25. The Iowa minimum wage applies to most employees, with limited exceptions, including certain tipped employees, students or part-time workers, and other exempt occupations. The top 5 minimum wage states in the U.S. are District of Columbia, Washington, California, Connecticut, and Massachusetts.
The federal minimum wage is currently $7.25 per hour and has not increased since 2009. Demand for a living wage that is fair to workers is rising. In response to this rising demand, numerous states, cities, and other localities have already enacted or will change minimum wage levels. In the few states with no established minimum wage, the current federal minimum wage of $7.25 per hour will continue to apply.
Based on local legislation, many states have already enacted minimum wage increases or approved increases due for implementation at a future date.
These ever-changing laws, effective dates, and methodologies result in minimum wages that may change at different times or differ dramatically within a state or region. Minimum wage changes can be triggered for a location when these pre-determined conditions change and require careful monitoring to ensure compliance to the latest wage levels.
Salary.com continuously tracks all these complex changes. We can help to keep you informed about future changes and stay up to date on the latest minimum wage levels in your essential locations. Show me more data to view U.S. state minimum wages for future years.

Browse Minimum Wage by Year, and Forecast Minimum Wage Increase Trends in Iowa

The minimum wages in some states are higher than the federal minimum wage in 2023, including District of Columbia, Washington, California, Connecticut, and others. Many of the minimum wage increases were effective on January 01, 2018. Some states have effective dates occurring at different months of the year. Check the chart to stay up to date on the hourly minimum wage in Iowa.
View upcoming minimum wage changes to be on top of future changes to the minimum wage in your location.

Hourly Minimum Wage for Tipped Employees in Iowa

The tipped minimum wage is the lowest amount employers can pay an employee in occupations such as a bartender or server, that regularly receive more than $30 a month in tips. In some states, the tipped minimum wage may be lower than the non-tipped minimum wage because employers can claim a tip credit.
It is important to note that the tipped minimum wage can vary depending on where your business is and the size of the business. In some states, the tipped minimum wage is equal to the overall minimum wage for that state. In some locations, the federal tipped minimum wage applies. In other locations, the state-tipped minimum wage is set above the federal minimum. Tipped minimum wages may vary from state to state and can be frequently adjusted, making it essential to stay informed about the latest wage levels.
In Iowa, the tipped minimum wage is the same as the state minimum wage. It may be subject to adjustment based on other criteria, such as the size of the business.
See tipped data learn more about tipped and non-tipped minimum wage in Iowa.

Iowa minimum wage in 2021: US$7.25 (effective January 1, 2008)

Iowa minimum wage in 2020: US$7.25

Iowa minimum wage in 2000: US$5.15 ($7.93 after inflation adjustment)

Iowa minimum wage in 1980: No state minimum wage

People's Opinions on Minimum Wage in Iowa

Iowa minimum wage laws do not allow employers to pay employees with disabilities a subminimum wage rate lower than the standard minimum wage.

09/19/2021

Minimum wage increases took effect Wednesday in 24 states and 48 cities across the country -- including Iowa's neighboring states of Minnesota, Illinois, South Dakota and Missouri.

09/09/2021

The appropriations provision on Iowa casino workers strips such employees from receiving the federal minimum wage should it increase, though HR 603 has stalled in the US House of Representatives.

08/27/2021

Lawmakers in Iowa have passed an appropriations measure that overhauls minimum wage requirements for workers at the state’s 19 commercial casinos.

08/27/2021

In addition to any Iowa-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers.

08/11/2021

If the appropriations measure had not passed the Iowa Legislature, casino workers would be entitled to 125 percent of the federal minimum wage.

07/29/2021

Inaction by Congress and state legislatures has led many cities and counties to adopt a local minimum wage, including Johnson County in Iowa.

07/19/2021

Our firm has particular expertise in handling minimum wage cases on behalf of tipped workers who are not being treated properly under Iowa and federal wage law.

07/14/2021

George Migliero, owner of G-Migs in Valley Junction, said while he supports raising Iowa's minimum wage, the job market is so competitive that wages are going up on their own.

07/09/2021

Peter Orazem, another economics professor at Iowa State, said retail workers, servers and those in the hospitality industry will see the most impact if the minimum wage is increased.

07/03/2021

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