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Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
If you do not find the answer to your question through these summaries or
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the next regular pay day. Iowa Stat. 91A.4
Employees who quit or resign
When an employer quits, the employer must pay the employee all wages due by the next
regular pay day. Iowa Stat. 91A.4
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee resigns employment due to a labor dispute, the employer must pay the
employee all wages due by the next regular pay day. Iowa Stat. 91A.4
Wages in Dispute
If there is a dispute between an employer and employee concerning the amount of wages
or expense reimbursement due, the employer must timely pay, without condition, all wages
conceded to be due to the employee and reimburse all expenses conceded to be due, less
any lawful deductions. The payment of conceded wages or reimbursement of expenses
does not relieve the employer of any liability for the balance of wages or expenses claimed
by the employee. Iowa Stat. 91A.7
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the next regular pay day. Iowa Stat. 91A.4
Employees who quit or resign
When an employer quits, the employer must pay the employee all wages due by the next
regular pay day. Iowa Stat. 91A.4
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee resigns employment due to a labor dispute, the employer must pay the
employee all wages due by the next regular pay day. Iowa Stat. 91A.4
Wages in Dispute
If there is a dispute between an employer and employee concerning the amount of wages
or expense reimbursement due, the employer must timely pay, without condition, all wages
conceded to be due to the employee and reimburse all expenses conceded to be due, less
any lawful deductions. The payment of conceded wages or reimbursement of expenses
does not relieve the employer of any liability for the balance of wages or expenses claimed
by the employee. Iowa Stat. 91A.7
Frequency of Wage Payments
An employer must pay employees no less frequently than twice per month on regularly
spaced pay days designated by the employer. An employer must pay employees within 12
days, excluding Sundays and legal holidays, of the end of the pay period. Iowa Stat. 91A.3
An employer must pay employees no less frequently than twice per month on regularly
spaced pay days designated by the employer. An employer must pay employees within 12
days, excluding Sundays and legal holidays, of the end of the pay period. Iowa Stat. 91A.3
Manner of Payment
An employer may pay employees by:
- cash,
- check redeemable on demand at full face value, or
by the employee.
Iowa Stat. 91A.3
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee consents in
writing and is able to designate the financial institution with which the wages are
deposited. Iowa Stat. 91A.3
An employer may pay employees by:
- cash,
- check redeemable on demand at full face value, or
by the employee.
Iowa Stat. 91A.3
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee consents in
writing and is able to designate the financial institution with which the wages are
deposited. Iowa Stat. 91A.3
| EmploymentLawHandbook.com |
| Your Employment and Labor Law Resource |
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Deductions from Wages
An employer cannot deduct or withhold wages from an employee's pay check for any of the
following:
- a cash shortage in a common money till, cash box, or register operated by two or more
employees or by an employee and an employer. However, an employer and a full-time
manager may agree in writing signed by both parties that the manager will be responsible
for a cash shortage that occurs within forty-five days prior to the most recent regular payday.
Not more than one such agreement can be in effect at an establishment;
- any losses due to dishonored checks received by an employee if the employee has been
given the discretion to accept or reject such checks and the employee does not abuse the
discretion given;
- any losses due to breakage, damage to property, default of customer credit, or
nonpayment for goods or services rendered so long as such losses are not attributable to
the employee's willful or intentional disregard of the employer's interests;
- lost or stolen property, unless the property is equipment specifically assigned to an
employee and the employee acknowledged receipt of the item in writing;
- gratuities received by an employee from customers of the employer;
- costs of personal protective equipment needed to protect an employee from
employment-related hazards, unless provided otherwise in a collective bargaining
agreement. This does not apply to items of clothing or footwear which may be used by an
employee during nonworking hours;
- costs of more than twenty dollars for an employee's return to the place of employment.
An employer may not make any other deductions from an employer's wages, unless:
a. The employer is required or permitted to do so by state or federal law or by order of a
court of competent jurisdiction; or
b. The employer has written authorization from the employee for any lawful purpose
accruing to the benefit of the employee.
Iowa Stat. 91A.5
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may require an employee to pay for the cost of a uniform or tools necessary for
by it having a logo, company colors, etc., then the employer must pay for the uniform. If the
uniform is generic, such as a uniform requiring a white blouse or black pants, then the
employer may require the employee to purchase it. An employer cannot deduct the cost of
a uniform from the wages of an employee even if it lawfully requires the employee to
purchase the uniform. IA Div. of Labor Wage & Hour FAQ
Medical or Physical Exams, including Drug Tests, Required for Employment
Iowa does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
An employer cannot deduct or withhold wages from an employee's pay check for any of the
following:
- a cash shortage in a common money till, cash box, or register operated by two or more
employees or by an employee and an employer. However, an employer and a full-time
manager may agree in writing signed by both parties that the manager will be responsible
for a cash shortage that occurs within forty-five days prior to the most recent regular payday.
Not more than one such agreement can be in effect at an establishment;
- any losses due to dishonored checks received by an employee if the employee has been
given the discretion to accept or reject such checks and the employee does not abuse the
discretion given;
- any losses due to breakage, damage to property, default of customer credit, or
nonpayment for goods or services rendered so long as such losses are not attributable to
the employee's willful or intentional disregard of the employer's interests;
- lost or stolen property, unless the property is equipment specifically assigned to an
employee and the employee acknowledged receipt of the item in writing;
- gratuities received by an employee from customers of the employer;
- costs of personal protective equipment needed to protect an employee from
employment-related hazards, unless provided otherwise in a collective bargaining
agreement. This does not apply to items of clothing or footwear which may be used by an
employee during nonworking hours;
- costs of more than twenty dollars for an employee's return to the place of employment.
An employer may not make any other deductions from an employer's wages, unless:
a. The employer is required or permitted to do so by state or federal law or by order of a
court of competent jurisdiction; or
b. The employer has written authorization from the employee for any lawful purpose
accruing to the benefit of the employee.
Iowa Stat. 91A.5
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may require an employee to pay for the cost of a uniform or tools necessary for
by it having a logo, company colors, etc., then the employer must pay for the uniform. If the
uniform is generic, such as a uniform requiring a white blouse or black pants, then the
employer may require the employee to purchase it. An employer cannot deduct the cost of
a uniform from the wages of an employee even if it lawfully requires the employee to
purchase the uniform. IA Div. of Labor Wage & Hour FAQ
Medical or Physical Exams, including Drug Tests, Required for Employment
Iowa does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Notice of Wage Reduction
The Iowa Workforce Development Division of Labor may require an employer, if it has
previously violated wage payment laws, to notify its employees at least one pay period prior
to the initiation of any changes to wages or paydays. The notice must either be in writing or
posted at a place where employee notices are routinely posted. Otherwise, there is no
Iowa law requiring employer's to notify employees of changes to wages or other terms an
conditions of employment. Iowa Stat. 91A.6
The Iowa Workforce Development Division of Labor may require an employer, if it has
previously violated wage payment laws, to notify its employees at least one pay period prior
to the initiation of any changes to wages or paydays. The notice must either be in writing or
posted at a place where employee notices are routinely posted. Otherwise, there is no
Iowa law requiring employer's to notify employees of changes to wages or other terms an
conditions of employment. Iowa Stat. 91A.6
Statement of Wages (Pay Stub)
On each regular payday, an employer must provide a statement to each employee showing:
- the hours the employee worked,
- the wages earned by the employee, and
- any deductions made.
The employer need not provide information on hours worked for employees who are
exempt from overtime under the Fair Labor Standards Act (FLSA), unless the employer has
established a policy or practice of paying exempt employees overtime, a bonus, or a
payment based on hours worked. An employer may comply with this notice requirement by
providing each employee access to view an electronic statement of the employee's
earnings and free and unrestricted access to a printer to print the employee's statement of
earnings, if the employee chooses. Iowa Stat. 91A.6
On each regular payday, an employer must provide a statement to each employee showing:
- the hours the employee worked,
- the wages earned by the employee, and
- any deductions made.
The employer need not provide information on hours worked for employees who are
exempt from overtime under the Fair Labor Standards Act (FLSA), unless the employer has
established a policy or practice of paying exempt employees overtime, a bonus, or a
payment based on hours worked. An employer may comply with this notice requirement by
providing each employee access to view an electronic statement of the employee's
earnings and free and unrestricted access to a printer to print the employee's statement of
earnings, if the employee chooses. Iowa Stat. 91A.6
Record Keeping Requirements
An employer must maintain and preserve for at least three years payroll or other records
containing the following:
- name in full, as used for social security record-keeping purposes, and on the same
record, the employee’s identifying symbol or number if such is used in place of name on
any time, work, or payroll records;
- home address, including ZIP code;
- date of birth, if under 19;
- time of day and day of week on which the employee’s workweek begins. If the employee is
part of a work force or employed in or by an establishment all of whose workers have a
workweek beginning at the same time on the same day, a single notation of the time of the
day and beginning day of the workweek for the whole work force or establishment will
suffice;
- basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per
piece, commission on sales, or other basis;
- hours worked each workday and total hours worked each workweek (for purposes of this
rule, a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed
and regularly recurring period of seven consecutive workdays);
- total daily or weekly straight-time earnings or wages due for hours worked during the
workday or workweek, exclusive of premium overtime compensation;
- total additions to or deductions from wages paid each pay period including employee
purchase orders or wage assignments. Also, in individual employee records, the dates,
amounts, and nature of the items which make up the total additions and deductions;
- total wages paid each pay period; and
- date of payment and the pay period covered by payment.
IA Admin. Code 875-216.2; IA Admin. Code 875-216.6
An employer must keep and preserve for a period of at least two years:
a. Basic employment and earnings records, including, from the date of last entry, all basic
time and earning cards or sheets on which are entered the daily starting and stopping time
of individual employees, or of separate work forces, or the amounts of work accomplished
by individual employees on a daily, weekly, or pay-period basis (for example, units
produced) when those amounts determine, in whole or in part, the pay-period earnings or
wages of those employees.
b. Wage rate tables, including, from their last effective date, all tables or schedules of the
employer which provide the piece rates or other rates used in computing straight-time
earnings, wages, or salary, or overtime pay computation.
IA Admin. Code 875-216.6
An employer must maintain and preserve for at least three years payroll or other records
containing the following:
- name in full, as used for social security record-keeping purposes, and on the same
record, the employee’s identifying symbol or number if such is used in place of name on
any time, work, or payroll records;
- home address, including ZIP code;
- date of birth, if under 19;
- time of day and day of week on which the employee’s workweek begins. If the employee is
part of a work force or employed in or by an establishment all of whose workers have a
workweek beginning at the same time on the same day, a single notation of the time of the
day and beginning day of the workweek for the whole work force or establishment will
suffice;
- basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per
piece, commission on sales, or other basis;
- hours worked each workday and total hours worked each workweek (for purposes of this
rule, a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed
and regularly recurring period of seven consecutive workdays);
- total daily or weekly straight-time earnings or wages due for hours worked during the
workday or workweek, exclusive of premium overtime compensation;
- total additions to or deductions from wages paid each pay period including employee
purchase orders or wage assignments. Also, in individual employee records, the dates,
amounts, and nature of the items which make up the total additions and deductions;
- total wages paid each pay period; and
- date of payment and the pay period covered by payment.
IA Admin. Code 875-216.2; IA Admin. Code 875-216.6
An employer must keep and preserve for a period of at least two years:
a. Basic employment and earnings records, including, from the date of last entry, all basic
time and earning cards or sheets on which are entered the daily starting and stopping time
of individual employees, or of separate work forces, or the amounts of work accomplished
by individual employees on a daily, weekly, or pay-period basis (for example, units
produced) when those amounts determine, in whole or in part, the pay-period earnings or
wages of those employees.
b. Wage rate tables, including, from their last effective date, all tables or schedules of the
employer which provide the piece rates or other rates used in computing straight-time
earnings, wages, or salary, or overtime pay computation.
IA Admin. Code 875-216.6
Notice Requirements
The Iowa Workforce Development Division of Labor may require an employer, if it has
previously violated wage payment laws, to:
- notify its employees in writing at the time of hiring what wages and regular paydays are
designated by the employer.
- notify its employees at least one pay period prior to the initiation of any changes to wages
or paydays. The notice shall either be in writing or posted at a place where employee
notices are routinely posted.
- make available to its employees upon written request, a written statement enumerating
employment agreements and policies with regard to vacation pay, sick leave,
reimbursement for expenses, retirement benefits, severance pay, or other comparable
matters with respect to wages. Notice of such availability shall be given to each employee
in writing or by a notice posted at a place where employee notices are routinely posted.
Iowa Stat. 91A.6
The Iowa Workforce Development Division of Labor may require an employer, if it has
previously violated wage payment laws, to:
- notify its employees in writing at the time of hiring what wages and regular paydays are
designated by the employer.
- notify its employees at least one pay period prior to the initiation of any changes to wages
or paydays. The notice shall either be in writing or posted at a place where employee
notices are routinely posted.
- make available to its employees upon written request, a written statement enumerating
employment agreements and policies with regard to vacation pay, sick leave,
reimbursement for expenses, retirement benefits, severance pay, or other comparable
matters with respect to wages. Notice of such availability shall be given to each employee
in writing or by a notice posted at a place where employee notices are routinely posted.
Iowa Stat. 91A.6
| Wage Payment Laws for Private Sector Employers |
- Frequency of Wage Payments
- Manner of Payments
- - Direct Deposit
- Payment upon Separation from Employment
- - Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Deductions from Wages
- - Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements
