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2020 Minimum Wage in Iowa: $7.25 per hour
Iowa’s minimum wage complies with the federal minimum wage. However, there are a few exceptions to this standard.
- Employees under 20 years old can be paid $4.25 per hour for the first 90 days.
- Full-time students can be paid 85% of the minimum wage ($6.16 per hour) for up to 20 hours per week at a university work-study program.
- Other exemptions allowed by the federal Fair Labor Standards Act.
Tipped: $4.35 per hour
Tipped employees can be paid $4.35 per hour, with the assumption that this hourly wage and their tips will add up to at least $7.25 per hour. If it does not, their employer must make up the difference.
In Iowa, any employee that regularly receives more than $30 a month in tips is considered a “tipped employee.”
The weekly minimum wage is $290. This is calculated by taking the hourly minimum wage, $7.25, and multiplying it by 40, the number of hours in a full workweek. This results in $290.
The annual minimum wage is $15,080. This is calculated by taking the weekly minimum wage, $290, and multiplying it by 52, the number of weeks in a year. This results in $15,080.
However, this does not account for time off. Not all employers offer paid time off, sick days, or holiday pay.
The minimum overtime rate is $10.88 per hour in Iowa. For every hour worked over 40 hours in a week, an employee is entitled to one-and-a-half times their hourly rate.
Iowa Minimum Wage Increase News
There is currently no legislation being considered in Iowa’s state capitol that could raise their minimum wage.
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