Iowa Employment Law — full calculator

Frequently Asked Questions

• Does Iowa have daily overtime rules like California?

  No. Iowa does not have daily overtime thresholds. Iowa follows the federal FLSA standard: overtime is owed at 1.5× the regular rate for any hours worked beyond 40 in a single workweek. There is no state requirement for overtime after 8 hours in a day.

• When must an Iowa employer issue a final paycheck after termination?

  Under Iowa Code §91A.4, all wages earned through the last day of employment must be paid no later than the next regular payday for the pay period in which the wages were earned. This applies to terminations, layoffs, and resignations alike. Commission shortfalls must be paid within 30 days of separation.

• What penalties apply if an Iowa employer deliberately withholds a final paycheck?

  Iowa Code §91A.8 imposes liquidated damages equal to the full amount of unpaid wages when the failure to pay is intentional. The employee is also entitled to court costs and attorney fees, effectively doubling the employer's exposure on top of the original unpaid amount.

• Are non-compete agreements enforceable in Iowa?

  Iowa applies a common-law reasonableness test to non-competes for most employees — courts weigh the duration, geographic scope, and the employer's legitimate business interest. However, Iowa Code §147.161 makes non-compete agreements with licensed mental health professionals void and unenforceable, and affected employees may recover attorney fees.

• Does Iowa require employers to give meal or rest breaks?

  Iowa does not require meal or rest breaks for adult employees. The federal FLSA is also silent on mandatory breaks. As a result, adult Iowa employees have no statutory right to a lunch break or paid rest period. Minors under 16 must receive a 30-minute break if they work five or more consecutive hours.

• Is there a mandatory paid sick leave law in Iowa?

  No. Iowa law does not require private employers to provide paid or unpaid sick leave. Sick leave is entirely at the employer's discretion unless set by a collective bargaining agreement or employment contract. If a policy exists, however, the employer must follow it.

• What is Iowa's minimum wage in 2026?

  Iowa's standard minimum wage is $7.25 per hour (matching the federal FLSA floor). Tipped employees must receive at least $4.35 per hour in direct wages — well above the federal tipped minimum of $2.13 per hour. Youth/training workers may be paid $6.35 per hour for their first 90 calendar days of employment. All rates are set under Iowa Code §91D.1 (as of 2026).

• Do Iowa minimum wage rules apply to all employers?

  Iowa Code §91D.1 generally exempts employers with annual gross revenues under $300,000. However, those employers may still be subject to the federal minimum wage if they are covered by the FLSA (for example, if they engage in interstate commerce). In practice, most employers are covered by one or both laws.

• Is Iowa's tipped minimum wage higher than the federal tipped rate?

  Yes. Iowa requires employers to pay tipped employees at least $4.35 per hour in direct wages. The federal FLSA allows a tipped minimum as low as $2.13 per hour. In both cases, if an employee's tips plus direct wages fall below the full minimum wage ($7.25/hr), the employer must make up the shortfall.

• Where can I file a wage complaint in Iowa?

  Wage claims can be filed with the Iowa Department of Inspections, Appeals & Licensing (DIAL) at dial.iowa.gov or by calling 515-725-5619. DIAL handles claims up to $6,500 at no cost to the employee. For larger claims or complex cases, employees may file a private lawsuit under Iowa Code Chapter 91A. The statute of limitations for wage claims in Iowa is generally two years.