The Iowa labor law guide
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Wages and breaks
The current minimum wage in Iowa is $7.25.
Minimum wage requirements don’t apply to employers with an annual gross sales volume of less than $300,000, except for the following industries that are not subject to a minimum sales threshold:Laundry and clothing repair, construction or reconstruction, hospital, schools, or public agencies.
The minimum wage for tipped employees is $4.35.
Tipped employees are allowed to participate in a tip pooling or sharing arrangement, but it is not clear whether employers are allowed to require employees to do so.
Employers are required to pay non-exempt employees an overtime rate of 1 ½ times the regular rate of pay for the number of hours worked in excess of 40 in one workweek, according to the Iowa Department of Labor.
The federal overtime law stipulates that the minimum salary requirement for administrative, professional, and executive exemptions is $684 per week, or $35,568 per year.
Iowa does not require employers to provide meal breaks.
Employers are required to grant a meal period of at least 30 minutes to minor employees who are scheduled to work 5 or more consecutive hours.
Final paychecks in Iowa
Employees who separate from employment for any reason must be paid final wages by the next regular payday.
Iowa child labor laws
14-and 15-year-old minors
Iowa child labor laws restrict the hours and types of work minors may perform.
For 14- and 15-year-olds, Iowa law allows up to 6 hours per day when school is in session; however, federal Fair Labor Standards Act (FLSA) rules are stricter and limit work to 3 hours per school day and 18 hours per school week.
Employers must follow the standard that is more protective of the minor, meaning the federal 3-hour daily limit applies in most cases.
When school is not in session, minors ages 14 and 15 may work up to 8 hours per day and 40 hours per week, within permitted time ranges.
Under federal law (FLSA), 14- and 15-year-olds may work only until 7 p.m. (extended to 9 p.m. from June 1 through Labor Day). However, Iowa Code Chapter 92 permits later hours under state law. In Iowa, minors ages 14 and 15 may work until 9 p.m. during the school year and until 11 p.m. from June 1 through Labor Day. Employers must comply with both state and federal law, applying the standard that is more protective of the minor where requirements differ.
16- and 17-year-old minors
Minors ages 16 and 17 may not work during school hours and are limited to 4 hours per day and 28 hours per week when school is in session under Iowa law.
When school is not in session, they may work up to 8 hours per day and 40 hours per week.
Additional restrictions apply to hazardous occupations and employment in establishments that sell or serve alcohol.
Leave Requirements
Iowa Sick days
Employers are not required to provide paid or unpaid sick leave.
Iowa medical and family leave
Employers may be required to provide employees unpaid leave in accordance with the federal Family and Medical Leave Act.
Iowa bereavement leave
Employers are not required to provide bereavement leave.
Iowa vacation time
Employers are not required to provide paid or unpaid vacation leave but must comply with their own established policies in their employee handbook if they choose to implement one.
Employers may deny employees payment for accrued vacation leave upon separation or disqualify them from receiving payment for the leave if they fail to comply with specific requirements if it is in their contract.
An employer must pay accrued vacation to an employee upon separation from employment if its policy requires it.
Employers may cap the amount of vacation leave an employee can accrue.
Employers may implement a “use-it-or-lose-it” policy requiring employees to use their vacation time by a set date.
Iowa holiday leave
Private employers are not required to provide paid or unpaid time off for holidays.
Iowa Jury Duty leave
Employers do not have to pay employees for time spent responding to a jury summons unless their policy stipulates they have to do so, but employees cannot be terminated or otherwise penalized for doing so.
Iowa Voting time
Under Iowa Code Section 49.109, employers must provide paid time off to ensure employees have two consecutive hours while polls are open to vote. The leave provided, when combined with the employee’s nonworking time, must allow for two uninterrupted hours during voting hours.
Employees are required to request voting leave in writing before election day. The previous reference to three hours is incorrect under Iowa law.
Iowa Military Leave
Employers may not discharge or discriminate against an employee because they are a member of the National Guard or armed forces. and must allow them to take leave to serve in the military.After their service, the employee is entitled to return to their job with the same rights to vacation and other employment benefits they would be entitled to if they had not taken the leave.
Iowa Emergency Response Leave
As long as the employee provides notice in writing that they are a volunteer emergency services, the employer may not discharge them for missing or being late to work because they were responding to an emergency.
If the employee is called for emergency services during work, the employer may decide whether to release them from work to perform emergency services.
The employer may require that the employee provide notice of their need for leave as soon as possible.
The employer may choose whether the leave is paid or unpaid. Afterward, the employer may require that the employee provide documentation confirming they were providing emergency services.
Iowa Pregnancy Disability Leave
Employers that have four or more employees must treat their employees who have a temporary disability because of pregnancy, childbirth, or related medical conditions the same as employees who have other temporary disabilities.
If leave is not otherwise available or has been exhausted, an employee with a pregnancy-related disability is entitled to leave for the duration of their pregnancy-related disability, up to eight weeks.
Iowa Witness Leave
Employers cannot take any adverse action against an employee for appearing as a witness in a criminal proceeding or as a plaintiff, defendant, or witness in a civil proceeding involving domestic abuse.
Hiring and firing
Iowa Discrimination
Federal law prohibits employers from discriminating on the basis of race, color, age, sex, religion, national origin, pregnancy, genetic information (including family medical history), physical or mental disability, military or veteran status, citizenship or immigration status, and other protected characteristics under applicable federal statutes.
Under the Iowa Civil Rights Act, state-level protections differ. As of July 1, 2025, gender identity is no longer listed as a protected class under Iowa law. Iowa continues to prohibit discrimination based on race, color, creed, sex, sexual orientation, religion, national origin, disability, age (18+), and AIDS/HIV status.
Iowa law also restricts when employers may inquire about an applicant’s criminal history, generally prohibiting such inquiries until after a conditional offer of employment has been made.
Click here to read our blog on what acceptable and unacceptable questions to ask during an interview.
Iowa Termination
Iowa is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action.
In the case of layoffs and workforce reductions, Iowa requires that employers with at least 25 employees provide 30 days’ written notice to affected employees and the Iowa Workforce Development before closing their business or conducting a mass layoff. The notice must contain the following information:
The company’s name
The company’s address
The company’s business contact information
The date of the closing or mass layoff
The names of affected employees
The address of affected employees
Iowa Record Keeping
Regarding employment and payroll data, under the Fair Labor Standards Act (FLSA) and others, you must:
For at least 3 years: keep payroll records, certificates, agreements, notices, collective bargaining agreements, employment contracts, and sales and purchase records. Also keep completed copies of each employee’s I-9 for three years after they are hired. If the employee works longer than three years, hold on to the form for at least one year after the employee leaves.
For at least 2 years: Keep basic employment and earning records like timecards, wage-rate tables, shipping and billing records, and records of additions to or deductions from wages. Also keep the records that show why you may pay different wages to employees of different sexes, such as wage rates, job evaluations, seniority and merit systems, and collective bargaining agreements.
For at least 1 year: The Equal Employment Opportunity Commission says employers should keep all employment records for at least one year from the employee’s date of termination.
Other record-keeping laws that may apply to you:
Under the Occupational Safety and Health Act, you need to keep records of job-related injuries and illnesses for five years. But some records, like those covering toxic substance exposure, have to be kept for 30 years.
You must keep files of benefit plans and seniority and merit systems while they are in effect and for at least a year after they end. You must also retain summary descriptions and annual reports of benefits plans for six years.
If your company is covered by the Family and Medical Leave Act, you must also retain relevant records of leaves, notices, policies, and more for three years.
Additional laws that may apply to you
Iowa Drug and Alcohol Testing laws
Iowa does not require drug and alcohol testing of applicants and employees. If employers want to test their employees or applicants for drugs or alcohol, they must comply with extensive requirements. Among other things, a policy that provides for alcohol testing must specify the unacceptable limit, but it may not be lower than .02%.
Certain employers must offer employees the opportunity to attend rehab after a positive alcohol test at work, and all employers must provide information about the dangers of drug and alcohol use in the workplace.
Iowa COBRA laws
COBRA is a federal law that allows many employees to continue their health insurance benefits after their employment ends. Because federal COBRA only applies to employers that have 20 or more employees, many states have adopted their own versions of the law, which are known as “mini-COBRAs.” Iowa’s mini-COBRA allows employees to continue their coverage for up to nine months. Employers must provide an employee with a notice of their COBRA rights within 10 days of the triggering event.
Iowa Whistleblower protection laws
Employers may not discriminate or retaliate against an employee because the employee opposed any unfair or discriminatory employment practice, obeys the Iowa Civil Rights Act, filed a complaint or participated in a civil rights proceeding, or reported a workplace safety violation.
Iowa Background check laws
Employers that conduct background checks must comply with the federal Fair Credit Reporting Act (FCRA), including required disclosures, written authorization, and pre-adverse action procedures. Iowa requires background checks for certain positions, including police officers, lottery personnel, healthcare workers, and childcare personnel.
Iowa does not have a statewide ban-the-box law. Employers are generally permitted to ask about criminal history during the hiring process. However, local ordinances in Des Moines and Waterloo restrict employers from inquiring about criminal history until after a conditional offer of employment has been made.
Compliance Calendar
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Remember
This summary is not qualified legal advice. Laws are always subject to change, and they can vary from municipality to municipality. It’s up to you to make sure you’re compliant with all laws and statutes in your area. If you need more compliance help, we recommend consulting with a qualified lawyer, checking with your local government agencies, or signing up for Homebase to get help from our certified HR Pros.