Wage-and-hour ground rules for hotel and hospitality employers in Iowa — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.

Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →

Minimum wage
$7.25
effective January 1, 2008
Tipped cash minimum
$4.35
max tip credit $2.90
Daily overtime
None
None (40-hr week)
Meal / rest breaks
No
meal: Not required · rest: Not required

Minimum wage#

The Iowa minimum wage is $7.25 per hour, effective January 1, 2008. Iowa Code ch. 91D sets $7.25 (matching federal since 2009; Iowa reached $7.25 on 1/1/2008, ahead of the federal schedule). An 'initial employment wage' of $6.35 is allowed for the first 90 calendar days.

Preemption Iowa preempts local minimum wage ordinances — cities and counties cannot set their own general wage floors.

Tipped employees & tip pooling#

Iowa allows a tip credit: employers may pay tipped employees a cash wage of $4.35 and claim up to $2.90 per hour in tips toward the minimum wage. Employee must customarily and regularly receive more than $30/month in tips; cash wage may not be less than 60% of the minimum wage and tips must bring total compensation to $7.25/hour. Iowa Code §91D.1(1)(c) — the 60% cash floor ($4.35) is materially higher than the federal $2.13.

Tip pooling#

No state pooling statute; federal rules govern (no employers/managers/supervisors; tip-credit pools limited to customarily tipped employees). (29 C.F.R. §531.54)

See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Iowa law controls.

Overtime#

Overtime is due after 40 hours in a workweek. No state overtime statute; FLSA governs.

Run the math — including the tipped-overtime trap — with the tipped overtime calculator.

Meal & rest breaks#

Meal breaks: Not required by Iowa law for adult employees — No meal or rest break requirement for adults; employees under 16 must receive a 30-minute break when working 5+ hours (Iowa Code §92.7).. Federal law requires only that breaks under 20 minutes, if offered, be paid.

Rest breaks: Not required by Iowa law.

Scheduling & premium pay#

  • Reporting-time pay: None required by state law.
  • Split-shift premium: None.
  • Spread of hours: None.

Service charges & gratuities#

Iowa has no service-charge-specific statute — the federal tip/service-charge line (and IRS treatment) controls. Background: service charges, auto-gratuities & resort fees.

Pay administration#

  • Pay frequency: Regular paydays at least biweekly, semimonthly, or monthly, no more than 12 days after the period close (Iowa Code §91A.3).
  • Wage statements: On each payday the employer must send or provide a statement showing hours worked, wages earned, and deductions; electronic delivery allowed with employee access. (Iowa Code §91A.6(4))
  • Exempt salary floor: $684.00/week (federal) — No state EAP salary floor; federal $684/week applies (DOL's 2024 increase was vacated and DOL reverted).
  • Lodging credit: Federal FLSA §3(m) reasonable-cost board/lodging standards apply; deductions require written authorization under the Iowa Wage Payment Collection Law.

2017 preemption legislation (HF 295) nullified the higher county minimum wages briefly in force in Johnson, Linn, Wapello, and Polk counties — statewide uniformity at $7.25 since. The 60% tipped floor ($4.35) and §91A wage-payment penalties (liquidated damages) are the main state-law levers for hotel staff claims.

Official sources#

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