Minimum Wage

Iowa’s current minimum wage is $7.25. Iowa Div. of Labor Services. It applies to employers whose gross sales or business is at least $300,000. Some exceptions apply.

An employer must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage.

Overtime

Iowa does not have laws governing the payment of overtime. Federal overtime laws apply. See FLSA: Overtime for more information regarding overtime requirements.

Meals and Breaks

Iowa employers must grant a meal period of at least thirty (30) minutes to employees under the age of sixteen (16) scheduled to work five (5) or more consecutive hours. Iowa Code 92.7; IA Div. of Labor Wage FAQs.

Iowa does not have any laws requiring an employer to provide a meal period or breaks to employees sixteen (16) years of age or older, thus the federal rule applies. The federal rule does not require an employer to provide either a meal (lunch) period or breaks. However, if an employer chooses to do so, breaks, usually of the type lasting less than twenty (20) minutes, must be paid. Meal or lunch periods (usually thirty (30) minutes or more) do not need to be paid, so long as the employee is free to do as they wish during the meal or lunch period. DOL: Breaks and Meal Periods.

Vacation Leave

In Iowa, employers are not required to provide employees with vacation benefits, either paid or unpaid. If an employer chooses to provide such benefits, it must comply with the terms of its established policy or employment contract. Iowa Code 91A.2(7)(b).

An employer may lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment. See Iowa Division of Labor Wage FAQs.

An employer may also lawfully establish a policy or enter into a contract disqualifying employees from payment of accrued vacation upon separation from employment if they fail to comply with specific requirements, such as giving two weeks notice or being employed as of a specific date of the year. See Iowa Division of Labor Wage FAQs.

An employer is required to pay accrued vacation to an employee upon separation from employment if its policy or contract requires it. See Iowa Code 91A.2(7(b).

An employer is not required to pay accrued vacation leave upon separation from employment if the employer’s established policy or employment contract is silent on the matter. See Iowa Division of Labor Wage FAQs.

An employer may cap the amount of vacation leave an employee may accrue over time. See Iowa Division of Labor Wage FAQs.

An employer may implement a “use-it-or-lose-it” policy requiring employees to use their leave by a set date or lose it. See Iowa Division of Labor Wage FAQs.

Sick Leave

Iowa law does not require employers to provide employees with sick leave benefits, either paid or unpaid. IA Div. of Labor FAQs. An employer in Iowa may be required to provide an employee unpaid sick leave in accordance with the Family and Medical Leave Act or other federal laws.

Holiday Leave

Iowa law does not require employers to provide employees with either paid or unpaid holiday leave. IA Div. of Labor FAQs. In Iowa, an employer can require an employee to work holidays. An employer does not have to pay an employee premium pay, such as 1½ times the regular rate, for working on holidays, unless such time worked qualifies the employee for overtime under standard overtime laws. If an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or employment contract.

Jury Duty Leave

An employer is not required to pay an employee for responding to a jury summons or serving on a jury, unless the employer has a policy or practice of doing so. Iowa Workforce Dev. FAQ

An employer may not discharge, penalize, threaten, or otherwise coerce an employee who receives and/or responds to a jury summons or who serves on a jury. Iowa Stat. 607A.45

Voting Leave

Iowa law requires employers to provide employees with paid leave sufficient to ensure that an employee has three (3) consecutive hours, when combined with nonworking time, within which to vote while polls are open. To be eligible for paid voting leave, the employee must request the leave in writing prior to the day of the election or vote. Iowa Code 49.109

Severance Pay

Iowa law does not require employers to provide employees with severance pay. If an employer chooses to provide severance benefits, it must comply with the terms of its established policy or employment contract.