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Employer guide · Reviewed October 2026

Iowa HR laws for employers (2026)

The Iowa rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.

$7.25minimum wage per hour
No statewide lawstatewide paid sick leave
Depends on policyunused vacation payout at separation

Iowa employment law at a glance

Minimum wage$7.25 per hour (federal minimum applies) Verify
Tipped cash wage$4.35 per hour
OvertimeNo state overtime law beyond federal rules. FLSA applies (1.5x after 40 hours in a workweek).
Final pay when firedNext regular payday for the pay period in which the wages were earned. Unearned commission advances are reconciled within 30 days.
Final pay when an employee quitsNext regular payday for the pay period in which the wages were earned.
Unused vacation / PTO at separationDepends on the employer's policy or agreement. Vacation owed under that policy counts as wages and is due by the next regular payday, prorated if the policy uses pro rata accrual. Verify
Paid sick leaveNo statewide mandate, and state law (Iowa Code 364.3(12), 331.304(12)) bars cities and counties from requiring paid leave. Verify
Meal breaksNo state requirement for adult employees (minors only).
Rest breaksNo state requirement.

Minimum wage note: Iowa's minimum wage is $7.25, the same as the federal rate, and no increase is scheduled. State law bars cities and counties from setting higher local minimum wages.

Verify means we could not confirm that item from an official Iowa or US Department of Labor source, so check it with the state before relying on it.

Other Iowa rules to know

  • Local preemption: since 2017, Iowa cities and counties cannot set minimum wages or leave requirements above state or federal law.
  • Pay frequency: employees must be paid at least monthly, within 12 days (excluding Sundays and holidays) after the pay period ends.

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Frequently asked questions

What is the minimum wage in Iowa in 2026?

$7.25 per hour (federal minimum applies), effective January 1, 2008. Iowa's minimum wage is $7.25, the same as the federal rate, and no increase is scheduled. State law bars cities and counties from setting higher local minimum wages.

When is a final paycheck due in Iowa?

If the employer ends employment: Next regular payday for the pay period in which the wages were earned. Unearned commission advances are reconciled within 30 days. If the employee quits: Next regular payday for the pay period in which the wages were earned.

Does Iowa require paying out unused vacation?

Depends on the employer's policy or agreement. Vacation owed under that policy counts as wages and is due by the next regular payday, prorated if the policy uses pro rata accrual.

Is paid sick leave required in Iowa?

No statewide mandate, and state law (Iowa Code 364.3(12), 331.304(12)) bars cities and counties from requiring paid leave.

Sources

HR laws in other states

This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.

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