Iowa Minimum Wage (2025)

The Iowa minimum wage for 2025 is set at $7.25 per hour.

For tipped employees in Iowa, the minimum cash wage is $4.35 per hour. Employers may take a tip credit, but must ensure tipped employees earn at least the full minimum wage of $7.25 when direct wages and tips are combined. Employers may take a tip credit of up to $2.90. Total earnings must reach $7.25/hour. Understanding the tipped minimum wage is essential for both employers and workers in the service industry.

Iowa allows a youth minimum wage of $4.25 per hour under specific conditions. Federal youth wage applies for workers under 20 during the first 90 consecutive calendar days of employment. This reduced training wage helps employers create entry-level opportunities while ensuring young workers receive fair compensation during their initial employment period.

Like most states, Iowa follows standard overtime regulations where eligible employees must receive overtime pay for hours worked beyond 40 in a workweek.

Important considerations for Iowa's minimum wage law include: State minimum wage equals federal minimum wage. Employers should consult with legal counsel to ensure full compliance with these provisions.

For the most current and authoritative information on Iowa's minimum wage laws and regulations, employers and workers should consult the official Iowa labor department website or legal counsel. Understanding your rights and obligations regarding minimum wage, tipped wages, and youth employment is essential for both employers and employees.