Iowa State Minimum Wage

Author: Jason Coles

Updated On:

Updated On:

The Iowa state minimum wage situation is identical to many others in the US. It sits at $7.25 per hour in 2024 – pegged at the same rate as the Federal minimum wage.

Iowa’s state minimum wage has remained the same since 2009. Over 10 long years with no increase.

It is important, however, as an employer in Iowa to understand the laws and rules that surround the minimum wage.

Also, for employees within the state – knowing what you should be paid, as well as your rights is incredibly useful to your employment situation.

If you are a full-time worker on minimum wage in Iowa, your earnings could be as follows:

  • Daily Minimum Wage: $58.00 (based on an 8-hour working day).
  • Weekly Minimum Wage: $290.00 (based on a 40-hour week).
  • Monthly Minimum Wage: $1,256.66 (based on a full-time month).
  • Yearly Minimum Wage: $15,080 (based on being paid 52 weeks per year).

You need to understand that these earnings are before any income tax has been reduced!

The graphic below highlights the Iowa minimum wage over the past several years.

As you can see – the minimum wage did not go up and remains at $7.25 per hour in 2024:

Iowa minimum wage

How the minimum wage increase is usually decided per state is through the consumer price index. But there are still 21 states with minimum wages all set at $7.25 per hour.

Many believe the federal minimum wage is due to increase throughout the new decade as it has remained the same for over 10 years.

If this were to happen, many small businesses would have to adapt and adjust to a potential increase in their employees’ wages.

But it is not just the statewide minimum wage of $7.25 per hour in Iowa that you need to be aware of as a business owner, there are plenty of exemptions too.

Iowa Minimum Wage Exemptions

In addition to the regular minimum wage rate, a few Iowa state minimum wage exemptions typically depend on your age or employment situation.

Below are the various minimum wage exemptions with some situational examples.

Iowa Student Minimum Wage

The minimum wage for student employees in Iowa is 85% of the Iowa state minimum wage, making their hourly pay $6.16 per hour in 2024.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible for the Iowa state minimum wage rate of $7.25 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying. Despite a student minimum wage rate, many Iowa employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Iowa Under 20 Minimum Wage

If you are under 20 years old in Iowa, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2024 Iowa state minimum wage of $7.25 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Iowa Tipped Minimum Wage

If you are a tipped employee in Iowa (someone who receives regular tips as a part of their job) then you are eligible to be paid a minimum wage of $4.35 per hour, with a tip credit of $2.90 per hour, ensuring that you reach the statewide minimum wage regardless if you make enough hourly tips.

Iowa Overtime Minimum Wage

Once you work over 40 hours a week, you can be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40.

So, the overtime minimum wage in Iowa is $10.88 per hour, 1.5 times the minimum wage of $7.25 per hour.

Iowa Minimum Wage Exemptions Via Employment Type

Here are the different types of jobs that are exempt from the Iowa minimum wage:

  • Executives
  • Administrative
  • Professionals
  • Outside salesman
  • Computer employees

Iowa Minimum Wage History

The table below shows the current rate and history of Iowa’s minimum wage over the past 40+ years since 1983.

You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.

YearMinimum WageIncrease ($)Increase (%)

If you are interested in checking out the minimum wage in all 50 states, including the historical data, take a look at our page dedicated to this.

Iowa Workforce Development Contact Details and Labor Law Poster

As an Iowa employer, you need to keep yourself compliant with the law. To do this, you need to display an Iowa Labor Law poster in a prominent place.

The good news is that you can acquire one of these posters for free from the Department of Workforce Development website, and download the poster.

If you wish to contact the department directly, here are all of the contact details you need:

Department of Workforce Development
1000 East Grand Avenue
Des Moines, IA 50319
Telephone: +1 515-242-5870

Minimum Wage Rates for each State


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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,335 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.