Overview of Iowa's Minimum Wage Requirements
As of 2024, the minimum wage in the state of Iowa is $7.25 per hour. This wage rate is in line with the federal minimum wage, as the state's minimum wage equals the federal rate if it is set below the federal level.
The current wage level in Iowa has significant implications for the workforce. It requires an individual to work 91 hours per week to afford a modest two-bedroom apartment. This situation affects a significant portion of the workforce, with 548,589 people, or 33% of the workforce, earning less than $15 per hour.
Understanding Local Minimum Wage Variations
The minimum wage requirements in different counties and cities in Iowa vary. For instance, in Polk County, the minimum wage ranges from $17.96 to $65.01 per hour depending on the job classification and pay grade. In Linn County, the minimum wage was set at $10.25 per hour as of January 1, 2019.
In Johnson County, the recommended minimum wage is $12.25 per hour as of July 1, 2023. However, in cities like Des Moines, Cedar Rapids, Davenport, Sioux City, and Iowa City, the minimum wage is $7.25 per hour, which aligns with the Federal Minimum Wage.
Minimum Wage Eligibility and Exemptions
In the state of Iowa, the minimum wage applies to employees in both the private sector and in federal, state, and local governments. However, there are certain exemptions and special conditions to this rule. Employers that gross at least $300,000 in sales or business per year are required to comply with the Iowa Minimum Wage Law.
Tipped employees who make $30 per month or more in tips can be paid as low as $4.35 per hour. However, if in any work week the wage the employer pays and the tips received do not average at least $7.25 per hour, the employer is required to pay the difference.
Minimum Wage Considerations and Compliance Tips
Food business employers in Iowa must adhere to several key minimum wage and compliance considerations. If an employee makes $30 per month or more in tips, the employer may pay as low as $4.35 per hour. If in any work week the wage the employer pays and the tips received do not average at least $7.25 per hour, the employer is required to pay the difference.
An Iowa employer is allowed to pay an “initial employment wage” of $6.35 per hour for the first 90 days of a new hire’s employment. This “initial employment wage” may only be paid for a total of 90 calendar days of employment with the same employer.
FAQs
- What is the current minimum wage in Iowa? As of 2024, the minimum wage in Iowa is $7.25 per hour.
- Are there any exemptions to the minimum wage in Iowa? Yes, tipped employees who make $30 per month or more in tips can be paid as low as $4.35 per hour.
- What is the initial employment wage in Iowa? An Iowa employer is allowed to pay an “initial employment wage” of $6.35 per hour for the first 90 days of a new hire’s employment.
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