Iowa Labor Laws in a Nutshell
The state’s labor law statutes, among other rules and regulations, are found in Title 19 of the Iowa Code. These laws govern a range of issues involving wages, hours, conditions of employment and both private and public sector employee rights. The purpose of these laws, as written into the code, is to "provide adequate protection for the well-being of workers in this state." They define regular pay rates, define and explain overtime, recordkeeping requirements, as well as additional requirements for certain specific industries such as agriculture, manufacturing, public employment and construction.
Iowa’s Department of Labor enforces the minimum wage, overtime, child labor, public service and equal pay aspects of the state’s labor laws . While the Iowa Workman’s Compensation Act, which is a requirement in the case of workplace injury, falls under the jurisdiction of the Iowa Workforce Development Division, most other labor laws in Iowa fall under the administration of the Iowa Division of Labor Services.
Iowa labor laws apply to both private and public employers throughout the state (this includes the state itself, cities, counties, school districts, and other government agencies). Depending on the law in question, though, there are limitations on the scope of the action, as certain regulations do not apply to farm or federal workers. These statutes comply with the federal Fair Labor Standards Act.
Minimum Wage in Iowa
In Iowa, employers are required to pay employees at least the state or federal minimum wage for each hour of work. As of January 1, 2019, the Iowa minimum wage is $7.68/hour, not considering other available credits such as overtime. The federal wage, by contrast, is $7.25/hour. Employers may pay the lower federal wage where it does not affect other benefits under federal law.
However, at least three counties have enacted local ordinances setting their own minimum wage standards, which carry with them various effects on Iowa workplace law. This is a development that is not insulated to Iowa either, as ordinances setting minimum wages are becoming increasingly common across the nation (see recent efforts by states such as Washington and Connecticut). As a result, we see several overlapping areas that affect how these laws are implemented and enforced.
Because these ordinances establish their own minimum wage thresholds, employers must comply with whichever dictates the highest of those four. Thus, employees working in Johnson and Linn Counties must be paid $10.25, while employees working in Polk, Wapello, or Marshall must be paid $8.75. There are generally no provisions in these laws to offset the required base hourly wage with other factors, such as tips. They do not appear to allow any room for state or federal exceptions either.
Some ordinances provide a further modification on how and when employees are paid. In Johnson and Linn Counties, for example, pay day must occur weekly and at least once every 14 days. All of these ordinances also address exceptions on age for minors. In Polk and Wapello Counties, for example, employers must pay workers under the age of 18 at least 85% of Iowa’s minimum wage, or $6.53/hour.
Finally, some ordinances additionally maintain a separate standard for supplemental rates, such as overtime, earned paid sick leave, and vacation leave. Johnson County, for example, provides in its ordinance employees (1) are entitled to be compensated for leave and pay for accrued, unused days off after separation from employment; (2) cannot waive their right to back pay and suitable awards; and (3) cannot postpone their right to payment of wages. In Linn County, by contrast, an exception applies for previously established contracts and policies in which an employee can waive their right to payment under the ordinance, provided a copy of the policy and proof that the employee signed the contract is produced.
These types of laws have clear applicability to hourly workers. The monetary amounts are minimal to implement, but can present unexpected litigation costs if employees believe they were not properly paid. In particular, employers should be sure to comply with any of these ordinances—if applicable—to ensure compliance with Iowa law.
Paying Overtime in Iowa
Iowa’s overtime pay laws require that employers pay hourly employees time and one-half their regular rate when they work more than forty hours in a week. The calculation for overtime pay is based on all time worked, including time an employee doesn’t actually work (such as holiday time, sick leave, leave of absence, etc.). Iowa law uses a method for calculating overtime that takes into account the employee’s total compensation for the week, divided by the number of hours actually worked, to arrive at an employee’s regular rate of pay. This can often require employers to go back and calculate hours on old checks if the employer has a compounding policy which pays an hourly employee a different wage for additional hours worked. For example, if the employee works 60 hours in a week and is paid $10 for the first 40 hours and $15 for the next 20, then overtime is paid at $22.50 ($10+$15)/2.
Iowa law and regulations do not provide any exemptions to overtime pay requirements for salaried employees. An employee cannot simply be paid a salary and not be eligible for any overtime pay if the employee is not exempt under either federal or state law. Exempt employees may be in the following categories: Professionals, Executives, Computer professionals, Outside salespeople, Administrative employees, Teachers, Law enforcement employees, Internal Revenue Service employees, Sailors and ship officers, Alcoholic beverage industry employees, Airlines employees, Truck drivers, Sailors and other Marine personnel, Fishing industry employees, Employing students under 18, Child labor, and Temporary haulers of brick and tile.
Break Time and Lunch in the Office
The IWD also notes that in addition to the minimum wage, IWD will require an employer to: "Allow workers to voluntarily participate in workplace wellness programs that provide the opportunity for physical activity, healthy nutrition and other lifestyle improvements." Although the wage order is not clear, it appears that simply allowing a worker to voluntarily participate in a wellness program is sufficient to satisfy this requirement.
A provision dealing with breaks and meal periods provides: For employers who employ at least four employees, when it is necessary that employees be on duty and present at a work site and/or while on a public highway, such as in the case of a truck driver, maintenance worker or other similarly situated employee for a period in excess of four consecutive hours, such employers shall compensate employees for a reasonable amount of time, not to exceed the equivalent of two fifteen minute breaks at fifteen minutes each, provided that such breaks are used to perform work which cannot be delayed, including but not limited to restroom and washing facilities, rest, and so forth, Separate meal breaks must be provided, without compensation, of at least thirty minutes for each five consecutive hours of work. The bottom line is that the IWD will require meal and rest periods for all shifts longer than four hours. The five hour rule for breaks is the same rule that appeared in the old order.
Wage Payment Standards and Recordkeeping Rules
Employers in Iowa are subject to certain recordkeeping obligations. Specifically, Iowa Administrative Code Rule 875-221.2(91) (b) requires employers with four or more employees to maintain certain records. For example, employees’ names, addresses, and compensation must be retained in addition to any time records that reflect the exact number of hours worked by employees each day. Though I do not believe these rules are often a target of government enforcement agencies, failure to maintain the required records could result in wage claims by employees and/or lawsuits. In fact, failure to maintain all employee pay records could subject the employer to protracted litigation, as employees would not be required to produce their timecards. Instead, employees would merely be required to testify as to how many hours they have worked , and/or how many records they have lost.
Timely Payment of Wages
As a general rule, Iowa employers are required to pay hourly employees on a scheduled basis. This means employees must be paid according to a "regular payday schedule." Iowa law does not particularly define "regular payday schedule," so employers should pay according to whatever regular monthly, semi-monthly, biweekly, weekly, or other basis is used. However, if an employer pays an hourly employee on a "commonly observed schedule for the employer’s industry," the employer does not violate the timely wage payment statute. Therefore, because hourly employees in Iowa are often paid on a biweekly basis, the monthly, semi-monthly, and other commonly observed schedules are arguably industry-wide standards even though they may not be observed by any specific industry.
Iowa Child Labor
Iowa places many restrictions on the employment of minors, and these laws have substantial criminal penalties associated with them. Employers, child advocates, and youth counselors are encouraged to review and familiarize themselves with these laws with their clients and/or children as soon as possible.
The Iowa administrative code and Iowa code section 92.8 limit the hours of working minors (under the age of 16), but also specifically prohibits them from working in certain dangerous and unregulated professions. In addition, federal child labor laws also restrict the hours that minors can work, as well as the type of work they can do and how hazardous it can be. All "working minors" (16 and over) are prohibited from:
There are no restrictions whatsoever for minors who are 16 or older. There is a slight restriction in the time minors 14 or younger can work. However, these laws typically apply to minors who are working, not if they take an unpaid internship in a trade or company.
Much more restrictive laws are in effect for minors that are 14 years old and under. Under Iowa Administrative Code Sections 60.1(2) and 60.2(8), working minors under the age of 14 can only work:
In addition, 14 and 15 year old minors can only work 8 hours in a given day. For example, if a minor works 5 hours on Wednesday, Thursday, and Friday, they can only work a maximum of 7 hours on Saturday.
Protection Against Employment Discrimination Laws
Iowa law protects hourly employees from workplace discrimination on the basis of their sex, race, color, religion, age (40 or older), disability, national origin, or sexual orientation. Most states have similar laws protecting employees from workplace discrimination. However, some states go well beyond federal and state law in protecting employees from workplace discrimination. Iowa is one of those states.
Iowa has expanded workplace protections for employees. A federal law known as Title VII of the Civil Rights Act of 1964 makes it unlawful for an employer with 15 or more employees (such as government employers and private employers) to discriminate against an employee on the basis of the employee’s sex, race, color, religion, or national origin. The Iowa Civil Rights Act (ICRA) does add disability as a protected class of employees, even for employers with fewer than 50 employees.
Unlike Title VII, the ICRA increases the protected classes of employees from sex, race, color, religion, national origin, and disability. It also includes an employee’s age (40 or older) and sexual orientation.
Not only does Iowa law ban an employer from discriminating against an employee in treating him or her differently from other employees, but the employer is also banned in Iowa from retaliating against an employee who presents a claim of discrimination. Retaliation can include such things as terminating the employee, giving the employee a negative job review, or not hiring the employee in the first place because he or she is of a certain sex, race, color, religion, age (40 or older), sexual orientation, or national origin.
Iowa law also requires an employer to make reasonable accommodations if an employee is pregnant if the accommodation is requested and can be accommodated by the employer. Iowa stops short of requiring an employer to provide a "reasonable accommodation" for an employee with a disability if the reasonable accommodation would cause the employer to incur more than a minimal cost or burden on the employer.
Even if an employee’s hours are modified and the employee is then replaced, that conduct may qualify as retaliation. For example, if an employee requests a schedule modification for a pregnancy-related disability and the employee was not accommodated, the replacement of the employee may be retaliation.
Employers can avoid potential liability for workplace discrimination and retaliation by ensuring they do not discriminate against employees because of sex, race, color, religion, age (40 or older), sexual orientation, or national origin. Employers can also avoid potential liability for workplace discrimination and retaliation by ensuring there is a process of making sure no organization, person, or third party acting on behalf of the employer retaliates against an employee for presenting or pursuing a complaint regarding discrimination.
Family and Medical Leave Worker Rights
Iowa labor laws require employers to grant family and medical leave to qualifying employees. Under Iowa labor laws, the equivalent of the federal Family and Medical Leave Act also applies to hourly employees. Under state law, employers with at least 35 hours of full-time employees must notify all employees about the process for applying for family and medical leave. An employee who believes his or her family and medical leave has been unlawfully denied can file a complaint with the Iowa Workforce Development .
When taking family and medical leave, an hourly employee’s payment for wages depends on whether his or her employer participates in an alternative form of workers’ compensation insurance. If an employer does not, employees get paid two-thirds of their wage for the maximum of eight workweeks or 40 workdays, whichever is more. If the employer participates in the alternative system, employees continue to receive full wages as long as they have enough vacation and sick time.