---
title: "Iowa Wage, Overtime and Meal-Break Law 2026"
description: "Iowa wage law 2026: $7.25/hr frozen since 2009 (Iowa Code §91D), FLSA-only overtime, no adult meal-break, final pay on next regular payday under §91A."
canonical: https://www.teamed.global/country-hiring-guides/united-states/iowa/wage-overtime-and-meal-break-law
---

United States · Iowa · Wage & hour child

Served by Teamed vetted partner-entity network in Iowa

# How does *Iowa wage, overtime and meal-break law* work in 2026?

A minimum wage frozen at $7.25 since 2009. Federal overtime only. No adult meal-break mandate. Final pay on the next regular payday under Iowa Code §91A.

Last reviewed 30 May 2026 · Iowa, United States guide

![Des Moines, Iowa city street with downtown buildings and late-afternoon light, Iowa state capitol visible in the distance.](/images/country-guides/ia-wage-ot.webp)

Photo: [Niko Vassios](https://unsplash.com/@cappyvas?utm_source=teamed&utm_medium=referral) via Unsplash · Des Moines, Iowa

Answer · cite this

Iowa's minimum wage is **$7.25 per hour** in 2026, frozen at the federal FLSA floor since **24 July 2009** under [Iowa Code §91D](https://www.legis.iowa.gov/docs/ico/chapter/91D.pdf). No city or county may set a higher rate: **Iowa House File 295 (2017)** preempted all local minimum-wage ordinances. Iowa has no state overtime law; the FLSA 40-hour weekly threshold and 1.5x multiplier govern. A 30-minute meal break is required only for employees under 16 working more than 5 consecutive hours, under [Iowa Code §92.7](https://www.legis.iowa.gov/docs/ico/chapter/92.pdf). Final wages are due on the next regular payday under the Iowa Wage Payment Collection Act, [Iowa Code §91A](https://www.legis.iowa.gov/docs/ico/chapter/91A.pdf).

![A vintage mechanical punch clock for tracking work hours.](/images/country-guides/id-wage-ot-polaroid.webp)

Punch in

## What is the minimum wage in Iowa in 2026?

Iowa's minimum wage is **$7.25 per hour**, matching the federal FLSA floor. It has not moved since **24 July 2009**.

[Iowa Code §91D](https://www.legis.iowa.gov/docs/ico/chapter/91D.pdf) sets the state minimum wage equal to the federal minimum under the [Fair Labor Standards Act](https://www.dol.gov/agencies/whd/flsa). The state has not enacted an independent floor above the federal rate, and because Iowa House File 295 (2017) preempts any city or county from setting their own minimum wage, every Iowa employer pays the same $7.25 regardless of city. There are no Des Moines, Cedar Rapids, or Iowa City overlays to track.

| Jurisdiction | Minimum wage 2026 | Source |
| --- | --- | --- |
| Iowa (state floor) | $7.25 per hour | [Iowa Code §91D](https://www.legis.iowa.gov/docs/ico/chapter/91D.pdf); unchanged since 24 July 2009 |
| Iowa tipped minimum | $4.35 per hour | Iowa Code §91D; tip credit of $2.90; total must equal $7.25 |
| Federal floor (FLSA) | $7.25 per hour | [29 U.S.C. §206(a)(1)](https://www.dol.gov/agencies/whd/minimum-wage/state) |
| Local city minimum (any Iowa city) | Not permitted | Iowa House File 295 (2017) preempts local ordinances |

The tipped cash wage is $4.35 per hour, with a tip credit of $2.90. You guarantee that cash wage plus tips equals or exceeds $7.25 each pay period. If tips fall short, you make up the difference. For most office and technology roles, Iowa's $7.25 floor is academic: market wages sit considerably above it. The floor matters for part-time, seasonal, and entry-level positions where a pay band set at a national employer standard might reference a higher out-of-state minimum and inadvertently overpay, or where a local-hire offer needs a hard floor to anchor to.

### The HF 295 (2017) preemption story

Before Iowa House File 295 was signed by Governor Branstad on 30 March 2017, Johnson County (Iowa City), Linn County (Cedar Rapids), and Polk County (Des Moines) had enacted local minimum wages above $7.25. The state preemption law voided all of them. Approximately 29,000 workers reverted to the $7.25 state floor when it took effect. Johnson County still publishes a non-binding recommended minimum wage, but it carries no legal force. You pay $7.25.

For a multi-state employer, Iowa's single flat floor is an operational simplification. You carry one Iowa minimum wage in your payroll system, no city matrix to maintain, no 1 January CPI reset to schedule.

## Does Iowa follow federal overtime law?

Yes. Iowa has no state overtime statute. The **FLSA 40-hour weekly threshold** and **1.5x regular rate** apply to every non-exempt Iowa employee.

There is no daily overtime trigger in Iowa. You pay overtime on every hour over 40 worked in a single 168-hour workweek, at 1.5 times the regular rate. That rate includes non-discretionary bonuses, shift differentials, and commissions earned during the same workweek; it excludes discretionary bonuses, gifts, and expense reimbursements.

| Rule | Iowa | Federal FLSA |
| --- | --- | --- |
| State overtime statute | None | n/a |
| Daily overtime trigger | None | None |
| Weekly overtime trigger | Over 40 hours in a workweek (FLSA applies) | Over 40 hours per workweek |
| Overtime premium | 1.5x regular rate (FLSA applies) | 1.5x regular rate |
| Double-time | None mandated | None mandated |
| Exempt salary basis floor | Federal floor: $684 per week | $684 per week (29 CFR Part 541) |
| Highly compensated employee threshold | Federal floor: $107,432 per year | $107,432 per year |

### Exempt classification in Iowa

To be exempt from overtime in Iowa, an employee must pass both a salary basis test and a duties test. The salary basis is at least $684 per week, paid as a fixed salary not reduced by quality or quantity of work. The duties test requires that the employee's primary duty is executive, administrative, professional, computer, or outside sales. Job title does not determine exempt status. A 2024 federal rule that would have raised the salary floor to $1,128 per week was vacated by a Texas federal court in November 2024, restoring the [29 CFR Part 541](https://www.dol.gov/agencies/whd/overtime/rulemaking) floor. The operative floor in May 2026 remains $684 per week.

Misclassification is the most common overtime-liability source in Iowa. A software developer in Des Moines paid as exempt but whose primary duty is executing defined tasks without genuine discretion fails the duties test. Back overtime can run four years on a wilful FLSA violation. Teamed's onboarding flow screens every salaried Iowa offer against the salary basis and duties test, and flags borderline cases before the hire confirms.

### Fluctuating workweek method

Iowa employers using a salaried non-exempt pay structure can apply the FLSA fluctuating-workweek method ([29 CFR 778.114](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-778/subpart-C/section-778.114)) if the salary genuinely covers all hours worked, the workweek fluctuates in hours, and the employee receives at least the applicable minimum wage. Under this method, overtime premium is the half-time rate (0.5x), not 1.5x, because the salary already covers the straight-time pay for all hours. It reduces overtime cost on high-hour weeks but requires a written agreement with the employee and consistent salary payment.

## Does Iowa require meal breaks or rest breaks for employees?

No, for adult employees. Iowa Code §92.7 requires a **30-minute break for employees under 16** working more than 5 consecutive hours. Adults have no statutory break entitlement.

92.7

Iowa Code

Iowa minor meal-break rule

Employees under 16 working more than 5 consecutive hours must receive a 30-minute break. Applies under Iowa Code §92.7 (child labour statute). No equivalent provision exists for adult workers aged 18 and over.

Federal FLSA rules fill the gap for adults. When you choose to offer breaks:

- **Short rest breaks (under 20 minutes)** count as paid working time and go into the 40-hour weekly overtime count.
- **Meal periods of 30 minutes or more**, where the employee is fully relieved of all duties, can be unpaid and excluded from hours worked.
- **Desk-bound lunches** do not qualify as unpaid meal periods. If your employee answers emails or takes client calls during a 30-minute lunch, every minute is on the clock.

The [PUMP Act](https://www.dol.gov/agencies/whd/nursing-mothers), a 2022 federal amendment to the FLSA, requires all employers to provide reasonable break time and a private, non-bathroom space for nursing employees to express breast milk for up to one year after the child's birth. This applies in Iowa regardless of employer size. Document the accommodation in writing.

Most Iowa employers offer a 30-minute unpaid lunch and one or two 10-to-15-minute paid breaks per eight-hour shift by policy, not statute. The handbook entry matters. Ad-hoc break practices create retrospective wage exposure when an employee later claims they worked through unpaid time. Write it down; apply it consistently.

## When must an employer pay a final paycheck in Iowa?

Iowa Code §91A.4 requires final wages on the **next regular payday** following separation, whether the employee resigned or was terminated. Iowa does not mandate payment on the day of termination.

The Iowa Wage Payment Collection Act (Iowa Code Chapter 91A) is the statute that governs final pay. The deadline is the next scheduled regular payday after the separation date. Unlike states with a seven-working-day or 72-hour rule on involuntary terminations, Iowa draws no distinction between a discharge and a resignation: both trigger the same next-regular-payday rule.

| Rule | Detail | Source |
| --- | --- | --- |
| Final pay · all separations | Next regular payday | [Iowa Code §91A.4](https://www.legis.iowa.gov/docs/ico/chapter/91A.pdf) |
| Liquidated damages (intentional non-payment) | 5% of unpaid wages per day (excluding Sundays, holidays, and the first 7 days after the missed payday), capped at 100% of the unpaid wages | Iowa Code §§91A.2(6), 91A.8 |
| Enforcement authority | Iowa Division of Labor, Iowa Workforce Development | [workforce.iowa.gov](https://workforce.iowa.gov/labor/wage-claims) |
| Available remedies | Back wages plus liquidated damages for wilful non-payment; civil suit available | Iowa Code §91A.8 |
| Statute of limitations | Two years (three for wilful violations) | Iowa Code §91A |

Two practical points for inbound payroll teams:

- **Bi-weekly payroll satisfies the rule in most cases.** If termination lands on day one of a new pay period, final pay falls 14 days later. Build this into separation planning rather than treating it as an emergency.
- **Liquidated damages accrue daily on intentional non-payment.** Under Iowa Code §§91A.2(6) and 91A.8, an intentional failure to pay exposes you to liquidated damages of 5 percent of the unpaid wages per day (excluding Sundays, legal holidays, and the first 7 days after the missed payday), up to a cap of 100 percent of the unpaid amount, plus court costs and attorney fees. Pay disputed amounts you cannot defend promptly, and document the reason for anything withheld.

Iowa's next-regular-payday rule is simpler to administer than states with immediate-termination or 72-hour rules, but it can create reputational exposure on involuntary separations where the employee expects payment sooner. Consider setting an internal policy to run out-of-cycle final-pay within 72 hours of an involuntary termination as a best practice, even though Iowa does not legally require it.

## What is the Iowa Wage Payment Collection Act?

Iowa Code Chapter 91A governs pay frequency, final-pay timing, written wage disputes, and remedies. It covers every private employer in Iowa with at least one employee.

Iowa Code §91A is the governing wage-payment statute. Its key operating requirements beyond final pay:

- **Pay frequency.** Iowa Code §91A.3 requires wages to be paid at least monthly, though bi-weekly and semi-monthly are the standard commercial practice and recommended for compliance with FLSA overtime calculation requirements.
- **Written itemised pay statement.** Each pay period, employees must receive a written statement showing hours worked, rates paid, gross wages, and all deductions. Electronic payslips satisfy this requirement.
- **Deductions.** Employers may only deduct amounts authorised by law (taxes, court-ordered withholding) or specifically authorised in writing by the employee. Unauthorised deductions are wage theft under Iowa Code §91A.
- **Direct deposit.** Iowa Code §91A.3(6) allows direct deposit, but only with employee consent. You cannot mandate direct deposit for a new hire who declines it.

The Iowa Division of Labor enforces Chapter 91A. Employees file wage claims at the Iowa Workforce Development office. For claims under $6,500, the Labour Commissioner handles investigation and determination. Claims above that threshold typically proceed to civil court. An employer found to have wilfully withheld wages can face liquidated damages equal to an additional month's wages, plus the unpaid amount, plus attorney fees and court costs.

For multi-state employers, Iowa's Chapter 91A is less aggressive on final-pay timing than states like California or Massachusetts, but its deduction rules and pay-statement requirements are active compliance items. A dedicated payroll specialist tracks Iowa payslip requirements and monitors deductions on every pay run, so the [Chapter 91A](https://www.legis.iowa.gov/docs/ico/chapter/91A.pdf) obligations run in the background without requiring manual audits from your team.

## How does Teamed run Iowa wage and hour compliance?

Teamed becomes your legal employer of record in Iowa for a flat **from $599 per employee per month**. Zero FX mark-up. Statutory cost passes through itemised on every invoice.

What Iowa wage-and-hour compliance looks like when Teamed runs it:

- **Minimum wage enforcement.** Iowa pays $7.25 per hour with no city overlays. The platform applies the state floor to every Iowa employee record. No January updates to schedule, no city-matrix maintenance.
- **Overtime calculation.** Hours over 40 per workweek are flagged and paid at 1.5 times the regular rate, including non-discretionary bonus components in the rate calculation. Salaried exempt offers go through the duties-test screen before the offer issues.
- **Break policy.** Iowa has no adult break mandate. The platform defaults to a 30-minute unpaid meal period and two 15-minute paid breaks per eight-hour shift as a documented policy baseline. Break configuration is adjustable per the employer's handbook. Minor employees under 16 receive the mandatory 30-minute break under Iowa Code §92.7 automatically.
- **Final pay.** Termination events entered into the platform automatically schedule final-pay on the next regular payday, satisfying Iowa Code §91A.4. The payroll specialist confirms the amount with the client the same day the termination event is entered. Out-of-cycle runs are available within 72 hours of any involuntary termination as a best-practice option.
- **Payslips and deductions.** Every Iowa payslip shows hours, rates, gross, and all deductions in itemised format, satisfying Iowa Code §91A.3 payslip requirements. No unauthorised deductions are processed without written employee consent.

Behind the platform are real HR and legal experts with deep local employment-law expertise, an in-house payroll lead familiar with [Iowa Code §91A](https://www.legis.iowa.gov/docs/ico/chapter/91A.pdf) timing rules, and an actual person, not a chatbot or a pooled queue, to call when something looks wrong. You message the same specialist every time.

Contractor onboarding, EOR payroll, and entity graduation all live on one platform. An Iowa contractor classified under the common-law test converts to W-2 employment on the same record. That employee can later [graduate to your own US entity](https://www.teamed.global/tools/crossover-calculator) when the model no longer fits, without switching systems. One timeline, one platform.

EOR is the right structure for Iowa until it isn't. Once you have five or more Iowa employees with predictable headcount growth, the crossover to your own US entity typically becomes cost-effective. The [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) shows you the month the EOR fee exceeds entity running costs. Pair it with the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to model total Iowa employment cost before you decide. That conversation is built into the relationship, not something you have to ask for.

Teamed Client Operations

Iowa's wage floor hasn't moved in 17 years and there are no city overlays to maintain. What catches employers is the Wage Payment Collection Act's deduction rules and the payslip itemisation requirement. We've seen clients running otherwise clean US payrolls who have an unapproved deduction in the Iowa records. The statute treats that the same as non-payment. Get the written authorisation before the first payslip, not after.

A note from Tom Price-Daniel

Iowa's $7.25 minimum wage hasn't moved since 24 July 2009. No city in the state can go above it.  
What bites is the Iowa Wage Payment Collection Act: itemised payslips required every period, unauthorised deductions treated as wage theft under Iowa Code section 91A.  
Get the written authorisation before the first payslip.

Tom Price-Daniel · Co-founder, Teamed

## Frequently asked questions

What is the minimum wage in Iowa in 2026?

Iowa's minimum wage in 2026 is $7.25 per hour, matching the federal FLSA floor. Iowa Code §91D sets the state rate equal to the federal minimum. The rate has not changed since 24 July 2009. No city or county in Iowa may set a higher rate due to Iowa House File 295 (2017), which preempted all local minimum-wage ordinances.

Does Iowa have its own overtime law?

Iowa has no state overtime statute. Overtime is governed entirely by the federal Fair Labor Standards Act (FLSA): 1.5 times the regular rate for every hour worked above 40 in a workweek. There is no daily overtime trigger and no double-time requirement under Iowa or federal law.

Does Iowa require meal breaks or rest breaks for employees?

Iowa requires a 30-minute meal break only for employees under 16 working more than 5 consecutive hours, under Iowa Code §92.7. There is no statutory meal-break or rest-break requirement for adult employees. Federal FLSA rules apply: paid breaks shorter than 20 minutes count as working time; unpaid meal periods of 30 minutes or more, where the employee is fully off duty, do not.

When must an employer pay a final paycheck in Iowa?

Iowa Code §91A.4, the Iowa Wage Payment Collection Act, requires final wages to be paid no later than the next regular payday following separation, whether the employee resigned or was terminated. Iowa does not require immediate payment on the date of termination. An employer who intentionally fails to pay is liable under Iowa Code §91A.8 for the unpaid wages plus liquidated damages, court costs, and attorney fees.

What is the Iowa Wage Payment Collection Act?

The Iowa Wage Payment Collection Act, Iowa Code Chapter 91A, governs how and when employers must pay wages in Iowa. It covers pay frequency (at least monthly, typically semi-monthly or bi-weekly by practice), final-pay timing (next regular payday), and remedies including back wages plus liquidated damages for intentional non-payment under §91A.8. The Iowa Division of Labor enforces the Act, accepting wage claims of $6,500 or less.

## Related United States guides

- [Hiring in the United States, overview](/country-hiring-guides/united-states)
- [Iowa overview](/country-hiring-guides/united-states/iowa)
- [Iowa state income tax & unemployment insurance](/country-hiring-guides/united-states/iowa/state-income-tax-and-unemployment-insurance)
- [Iowa worker classification](/country-hiring-guides/united-states/iowa/worker-classification-state-test)
- [Iowa termination and at-will exceptions](/country-hiring-guides/united-states/iowa/termination-law-and-at-will-exceptions)
- [Iowa paid family and sick leave](/country-hiring-guides/united-states/iowa/paid-family-and-sick-leave)
- [Arizona wage, overtime and meal-break law](/country-hiring-guides/united-states/arizona/wage-overtime-and-meal-break-law)
- [Alabama wage, overtime and meal-break law](/country-hiring-guides/united-states/alabama/wage-overtime-and-meal-break-law)
- [California wage, overtime and meal-break law](/country-hiring-guides/united-states/california/wage-overtime-and-meal-break-law)
- [Employer of Record overview](/employer-of-record)
- [Pricing, Zero FX Fixed](/pricing)
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)
- [Contractor Classifier](https://www.teamed.global/tools/contractor-classification)
- [Talk to an expert](https://www.teamed.global/contact)

A note on this page.

This is a guide, not legal advice. Iowa's statutory rates and rules cited here reflect Iowa Code as of May 2026. Confirm with the Iowa Division of Labor and the relevant agency before relying on a specific figure for compliance decisions.