Iowa Labor Laws (2025 Guide)

What’s New in 2025

There are currently no significant updates to Iowa’s employment laws scheduled for 2025. 

Labor Law Posters

Federal Labor Law Posters
State Labor Law Posters

Wage and Hour Laws

Minimum Wage

Iowa’s minimum wage is $7.25/hour—the same as the federal minimum wage. Iowa’s minimum wage hasn’t increased since it was introduced in 2008. 

The minimum wage doesn’t apply to small retail and service businesses with annual gross revenue under $300,000, with exceptions for certain types of companies, including dry cleaners, construction businesses, and hospitals. 

Other exceptions to the minimum wage include:

• Administrative and supervisory employees paid a salary.
• Employers in the first 90 days of employment (employers can pay them $6.35/hour).

Tipped Minimum Wage

The tipped minimum wage in Iowa is $4.35/hour. Employers can pay employees this as long as their wages plus tips add up to $7.25/hour. 

The tipped minimum wage applies only to workers who earn at least $30/month in tips. 

Overtime Laws

Iowa doesn’t have its own overtime law. Instead, the federal Fair Labor Standards Act (FLSA) applies, requiring employers to pay non-exempt employees 1.5 times their regular pay rate for any hours worked over 40 per week. 

Employees who are exempt from FLSA overtime rules include:

• Executive, administrative, and professional employees.
• Outside sales employees.
• Computer employees.
• Casual babysitters.
• Railroad and air carrier employees.
• Live-in domestic service workers.

Break Laws

Meal and Rest Breaks

No Iowa laws require employers to provide adult employees with meal and rest breaks. Exceptions to this include where a union contract or regulatory agency requires breaks. 

If an employer is subject to the FLSA, any breaks of 20 minutes or less must be paid. 

Workers under 16 who work at least 5 hours a day must have a 30-minute break. 

Recordkeeping Requirements

Iowa employers must keep payroll records for at least 3 years. Payroll records include details of:

• The number of hours worked.
• The amount of wages earned.
• Any deductions from employees’ wages.

Scheduling Laws

There are currently no predictive scheduling laws in Iowa requiring employers to notify employees of schedules in advance or compensate them for short-notice changes to schedules. 

Employee Compensation and Benefits

Reporting Time Pay

There are no reporting time laws in Iowa requiring employers to pay workers who report to shifts but are sent home before working. Employees must be paid for time worked. 

Payday Frequency and Method

Iowa employers must pay employees on regular paydays—either monthly, semimonthly, or biweekly—unless a written agreement between the employer and employee says otherwise. 

Employers must give employees written notice of these regular paydays when they’re hired. 

Wages can be paid in cash, check, or—at the employee’s request—by direct deposit. 

Paystub Requirements

Iowa law requires employers to provide employees with a statement every payday detailing:

• The number of hours worked.
• The amount of wages earned.
• Any deductions made by the employer.

Employers can provide employees with hard copies or electronic pay statements. Employees can ask the employer in writing to provide them with hard copies or allow them to access and print their electronic pay statement at work. 

Workers can also ask their employer to give them a written explanation of how their wages and deductions are calculated. Employers must provide this information within 10 days of a request. 

Wage Deductions and Garnishments

Employers can make specific deductions from employees’ wages. These include:

• Legally required deductions—for instance, taxes.
• Deductions that benefit the employee with their written authorization.
• Wage garnishments.

Iowa employers are prohibited from deducting wages for damages to property, tips, and the cost of personal protective equipment. They also can’t deduct wages for cash shortages or lost or stolen property unless the employee accepts it. 

Under Iowa law, garnishments are limited to 25% of an individual’s disposable earnings or the amount by which their disposable earnings are more than 30 times the federal minimum wage—whichever amount is less. 

There are also limits on the total amount each creditor can garnish each year. For example, if a worker earns less than $12,000, a creditor can garnish a maximum of $250. If a worker earns between $35,000 and $49,999, a creditor can garnish a maximum of $2,000.  

Different limits apply to consumer credit transactions. Debtors can’t garnish more than 25% of an individual’s disposable earnings or the amount by which their disposable earnings are more than 40 times the federal minimum wage—whichever amount is less. 

Garnishments for unpaid federal taxes, student loans, and child support are also limited under federal law. 

Final Paycheck Laws

Employees must be paid their final paycheck on their next regular payday, regardless of whether they quit or are terminated. 

Workers’ Compensation

Most Iowa employers must have workers’ compensation insurance, either via an insurance company or self-insuring. 

Workers’ compensation provides benefits to employees who are injured at work or develop a work-related illness. 

Most Iowa workers are covered by workers’ compensation, with limited exceptions—for example, for independent contractors. 

The Workers’ Compensation Division (WCD) of the Department of Inspections, Appeals, and Licensing oversees workers’ compensation in Iowa.

Workers may be able to access these types of workers’ compensation benefits:

• Medical: Covers reasonable treatment expenses related to the work injury.
• Temporary total disability: Offers wage replacement for workers completely unable to work after 3 days off work until the worker returns to work or they’re well enough to work in a similar role (additional benefits may apply for workers off more than 14 days).
• Temporary partial disability: Offers partial wage replacement for cases where a worker must take a lower-paying role due to injury-related restrictions.
• Healing period: Compensates workers recovering from an injury that leads to a permanent impairment.
• Permanent partial disability: Compensates workers who have permanent injuries or physical restrictions or can’t earn the same wages as before.
• Permanent total disability: Provides ongoing wage replacement for cases where the worker is unable to ever return to work due to their injury.
• Second injury: Applies to cases where a worker sustains a second injury to a foot, leg, hand, arm, or eye after suffering a permanent injury to another limb.
• Vocational rehabilitation: Can provide limited financial support to a worker who participates in a recognized vocational rehabilitation program.
• Death: Covers funeral expenses and benefits for surviving spouses and dependent children.

To access benefits, workers have 90 days to notify employers of their work injury. If the injury leads to the worker having more than 3 days off work, permanent injury, or death, employers must file a First Report of Injury form with the WCD. They have 4 days to do so. 

If an employer or insurer denies a workers’ compensation claim, the individual can appeal to the WCD and seek a hearing. 

Unemployment Insurance

Employers fund unemployment (UI) benefits in Iowa by paying an unemployment tax to the Iowa State Unemployment Insurance Trust Fund. 

Individuals who lose their jobs through no fault of their own may be eligible to receive UI benefits. Applicants must:

• Be able and available to work.
• Have received wages from a covered employer in at least 2 quarters of their base period (their base period is the first 4 quarters of the last 5 quarters before an applicant files their claim).
• Meet specific wage requirements during their base period.
• Be looking for work.

Individuals can file for UI benefits online via the Iowa Workforce Development website or at a center. A new online system, IowaWORKS, will be available from June 3, 2025. For their application, the individual must provide information, such as:

• Their Social Security Number.
• Contact details.
• Pay checks or W-2 forms.
• Details of their previous employment.

The amount of benefits individuals receive depends on their earnings during their base period and how many dependents they have. The current maximum weekly benefit is $739 (this is adjusted each year in July). 

Individuals may receive benefits until their Maximum Benefit Amount (often 16 weeks) or the end of the benefit year. 

Workplace Rights and Protections

Discrimination and Harassment

In Iowa, employers with 4 or more employees can’t discriminate against job seekers or employees based on the following characteristics:

• Age.
• Race.
• Creed.
• Color.
• Sex.
• Sexual orientation.
• Gender identity.
• National origin.
• Religion.
• Disability (physical and mental).

The law specifically prohibits wage discrimination based on the above characteristics. 

An individual who believes they’ve been subject to discrimination can file a complaint with the Iowa Office of Civil Rights (IOCR). The deadline to do this is 300 days from the date of the alleged discrimination. 

The IOCR reviews the complaint and collects more information from the complainant and employer. Both parties must complete a questionnaire about the allegations. They have 30 days to respond after receiving a questionnaire from the IOCR. 

Sixty days after filing their complaint, a complainant can request a “right to sue” letter from the IOCR and file a lawsuit against the employer. They have 90 days after receiving the letter to do so. This closes the IOCR complaint. Complainants can’t file a lawsuit unless they first file a complaint with the IOCR. 

Where the complainant doesn’t request a “right to sue” letter, the IOCR investigator reviews the matter to decide whether there’s a reasonable possibility that discrimination occurred. 

If there’s not, the IOCR closes the matter. The complainant can ask for this decision to be reconsidered. 

If there’s a reasonable possibility that discrimination occurred, the IOCR offers the parties mediation to resolve the matter without a formal investigation. 

If mediation is unsuccessful, the matter proceeds to an investigation. Based on the investigation, the IOCR investigator makes a recommendation to an Administrative Law Judge (ALJ), who reviews the case and issues a final determination. 

If the ALJ finds no probable cause for discrimination, the complainant can’t request a “right to sue” letter. 

Where the ALJ finds probable cause, the IOCR conciliates the matter to reach a settlement between the parties. If conciliation is unsuccessful, the matter may proceed to a public hearing. 

The IOCR and the federal Equal Employment Opportunity Commission (EEOC) have a work-share agreement. If someone files a complaint with the IOCR related to a characteristic also protected by federal law, the complaint is cross-filed with the EEOC. 

Leave Laws

❌ Family and Medical Leave	Iowa doesn’t have its own family and medical leave law.  However, many employees in the state are covered by the federal Family and Medical Leave Act (FMLA). This law gives eligible workers up to 12 weeks each year of job-protected, unpaid leave: • For their own medical reasons. • To support a family member with a serious health condition. • For maternity or paternity leave (including adopted and fostered children). • For reasons relating to a military family member on active duty. • To care for an injured military family member (up to 26 weeks leave available). Workers are eligible for FMLA leave if they’re at a workplace with at least 50 employees in a 75-mile radius and have worked for the employer for 1 year and at least 1,250 hours.
❌ Paid Sick Leave	There are no paid sick leave laws in Iowa.
❌ Paid Family Leave	There are no laws requiring employers to provide paid family leave.  Eligible employees may access unpaid leave under the FMLA for this purpose.
❌ Pregnancy and Parental Leave	There are no specific maternity or paternity leave laws in Iowa. Employees may access unpaid leave under the FMLA for these reasons.  Under Iowa’s anti-discrimination law, employers with 4 or more employees must treat pregnancy-related disabilities (including those related to miscarriage and abortion) the same as any other temporary disability—for example, for sick leave.  If employees with a pregnancy-related disability don’t have leave available under another policy, employers must let them take leave for the duration of their disability or 8 weeks (whichever is less). Employees must provide timely notice to access this leave, and employers can require a medical certificate.
❌ Vacation and Personal Leave	Iowa employers aren’t required to provide vacation or personal leave to employees. Employers who choose to do so should ensure the leave complies with any relevant policies or employment agreements.

Other Mandatory Leave

Military Leave	Employees can’t be fired for taking leave to serve as a member of the National Guard or other armed forces. This leave doesn’t have to be paid for private employees, but it’s job-protected—employees must be able to return to the same or equivalent position.
Jury Duty Leave	Employers can’t retaliate against employees for taking time off to serve on a jury.
Witness Leave	Employers can’t discriminate against or penalize employees who take time off to attend court as witnesses, plaintiffs, or defendants in a civil proceeding.
Voting Leave	Employers must provide workers up to 2 hours of paid leave to vote. The exception is when employees have 2 hours of non-work time during the day to vote.  Employees must make a written request to use this leave before election day.
Emergency Response Leave	Private employers can’t terminate employees for being late to work or taking leave to act as a volunteer firefighter, reserve peace officer, or emergency medical care provider. This leave doesn’t have to be paid.  Employees must notify their employer that they are a volunteer emergency services provider. Employers can also request documentation to support the leave.

Child Labor Laws

Under Iowa’s child labor laws, minors must be at least 14 years old to work. Some limited exceptions exist, such as children working in a home before or after school or while on vacation, or children working for their parents. 

Iowa previously required employers to have work permits for minor workers. However, this law was repealed in 2023. 

Employees under 16 who work at least 5 hours in a shift must have a 30-minute break.

These are the restrictions in Iowa on the types of work minors can do and their work hours:

	14 and 15-year-olds	16 and 17-year-olds
When school is in session	Can work: • Outside school hours • Between 7am and 9pm • Up to 6 hours/school day • Up to 8 hours/weekend day • Maximum 28 hours/week	No restrictions on work hours
June 1 to Labor Day	Can work: • Between 7am and 11pm • Up to 8 hours/day • Up to 40 hours/week
Prohibited types of work	Iowa’s child labor laws provide a list of activities 14-year-old employees can do, such as: • Retail and foodservice • Office and clerical work • Clean up work • Car washing According to these laws, approved work activities for 15-year-olds include: • Stocking shelves (lifting a maximum of 30 pounds) • Working as lifeguards and swim instructors 14 and 15-year-olds can’t work in various settings, including: • Manufacturing • Mining • Warehousing • Construction • Cooking (with limited exceptions) • Warehouses (not including administrative work)	All minors are prohibited from working in certain settings, including: • Explosives manufacturing or storage • Logging • Using power-driven machines in various contexts • Meat slaughtering • Roofing • Excavation • Dry cleaning 16 and 17-year-olds can only serve alcohol under specific conditions.  A complete list of prohibited occupations for minors in Iowa is available here. The federal FLSA has more restrictions that employers covered by the FLSA need to comply with.

Workplace Safety and Health

Iowa has a state workplace safety and health plan administered by Iowa OSHA. This state plan covers most private sector employers, as well as local and state governments. 

Iowa’s safety and health laws adopt the federal Occupational Safety and Health Administration’s (OSHA) standards, with some additional standards for certain workers and risks. 

Employer obligations include:

• Providing employees with a safe workplace free from known hazards.
• Complying with all OSHA standards, rules, and regulations.
• Providing employees with the necessary safety equipment.
• Displaying an OSHA poster in the workplace.
• Keep a log of any workplace injuries and illnesses (this applies only to certain employers with 10 or more employees).
• Reporting any workplace deaths within 8 hours and any incidents resulting in inpatient hospitalization, amputation, or the loss of an eye within 24 hours (they can do this by filing an incident report form or calling Iowa OSHA).

Iowa’s safety and health laws give employees the right to work in a safe environment and protect them from employer retaliation for filing a complaint with Iowa OSHA or assisting OSHA investigators. 

Employees who believe a workplace has violated an OSHA standard or rule can report the employer to Iowa OSHA for investigation. Employees can also contact Iowa OSHA informally online to ask for information and advice. 

The federal OSHA deals with retaliation complaints. 

Labor Union Regulations

Iowa is a right-to-work state, meaning union membership is voluntary. Employers can’t force employees to join a union or pay union fees as a condition of their employment. 

State law protects public employees’ right to organize, join unions, and bargain collectively. 

The federal National Labor Relations Act (NLRA) applies to most private sector workers in Iowa. Under the NLRA, employees have the right to:

• Form and join unions.
• Refuse to join a union.
• Engage in concerted activity—where 2 or more non-union members work together regarding employment conditions.

Employment Contracts and Severance

Employment Contract Laws

Iowa has at-will employment. Employers or employees can terminate the employment agreement at any time, for any legal reason or no reason. An employment contract replaces the default at-will employment position. 

Like many states, non-compete agreements are enforceable in Iowa if they’re reasonably necessary to protect a legitimate business interest. 

Non-competes can’t be included in contracts with mental health professionals and individuals hired through healthcare employment agencies. In the last few years, there’ve been several unsuccessful attempts to change state law to narrowly restrict or ban the use of non-competes generally in Iowa. 

Severance Pay

Severance pay isn’t mandatory in Iowa. 

Additional State-Specific Employment Laws

Workplace drug testing	Employers are allowed to test candidates and employees for drugs and alcohol but must follow strict testing procedures. These include treating the time required for testing as work time and creating and providing a written policy to employees.
Mass layoffs	The federal Worker Adjustment and Retraining Notification Act requires employers with 100 or more employees to give advance notice of plant closures or mass layoffs.  Under Iowa’s mini-WARN law, employers with at least 25 employees must give their workforce 30 days’ notice of closures or mass layoffs.
Mini-COBRA law	The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) ensures that employee health coverage continues after certain events, such as job loss or reduced work hours. This law applies only to employers with 20 or more employees.  Iowa’s mini-COBRA law applies to employers with 2 to 19 employees.

Legal Resources for Employers and Employees

Key state government departments with links to labor law information for employers and employees include:

• Iowa Workforce Development.
• Department of Inspections, Appeals, and Licensing.
• Iowa Office of Civil Rights.

The Iowa Labor Center offers various publications and resources on workers’ rights, as does the People’s Law Library. 

Iowa Legal Aid also has various employment law articles. Employees may also be eligible for individualized legal advice and assistance. 

Disclaimer

The information presented on this website about labor laws in Iowa is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.