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. General minimum and tipped wage rates were reviewed on October 18, 2026; effective dates and source-specific rule updates appear below.
Rate review: October 18, 2026. Apply the rate for the work date, location, occupation, and employer tier. The linked statutes, rules, and agency guidance control the coverage and exceptions. How we verify →
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). Under federal law, short rest breaks of about 5 to 20 minutes count as paid working time.
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.
Sources and further reading#
Government agencies and official publishers appear first. Independently hosted legal texts and secondary reporting are identified separately below.
Official sources
- Iowa Division of Labor (DIAL)
- US DOL Wage and Hour Division
- US DOL minimum wages for tipped employees table (accessed 2026-06-12)
Additional reporting and commentary
- Minimum-Wage.org Iowa minimum wage page (accessed 2026-06-12)
- Nolo: Iowa laws for tipped employees ($4.35 cash floor) (accessed 2026-06-12)