The minimum wage in Iowa as of 2025 is $7.25 per hour, which is the same as the federal minimum wage and has not changed since 2008
. Key details about Iowa's minimum wage include:
- It applies to most workers in the state unless exempt under federal or state laws
- Employers can pay tipped employees a lower cash wage of $4.35 per hour, provided tips bring the total to at least $7.25 per hour
- New employees under 20 years old may be paid a training wage of $4.25 per hour for the first 90 days
- Overtime pay is required at 1.5 times the regular rate for hours worked over 40 in a week, which would be $10.88 per hour based on the minimum wage
- Small businesses with gross sales under $300,000 may be exempt from paying the state minimum wage, but federal rules still apply if the business meets certain criteria
- Iowa has not increased its minimum wage in over 15 years, trailing behind most neighboring states that have raised theirs above $10 per hour
Thus, Iowa's minimum wage remains at the federal baseline of $7.25 per hour with some specific exceptions for training wages and tipped employees
