Dealing With Unpaid Wages in Iowa

My employer hasn't paid me — here's what Iowa law says and what to do next.

Iowa Law

Statute: Iowa Code § 91A.4

Deadline: 7 days

Penalty: Employer may be liable for liquidated damages equal to the unpaid wages, plus court costs and reasonable attorney fees

What is dealing with unpaid wages?

The federal minimum wage is $7.25 per hour. Your employer must pay you at least this amount for every hour you work. Many states and cities have higher minimum wages — you're entitled to whichever is higher.

Tipped employees have a lower federal minimum ($2.13/hr), but your tips plus wages must equal at least $7.25/hr. If they don't, your employer must make up the difference.

What to Do If Your Employer Pays Below Minimum Wage

Step 1: Know your rate. Check your state and city minimum wage — it's often higher than the $7.25 federal rate.

Step 2: Calculate your actual hourly pay. Divide your total weekly pay by total hours worked. If it's below the minimum, you have a claim.

Step 3: Document everything. Save pay stubs, schedules, and any records of hours worked.

Step 4: File a complaint. Contact the DOL Wage and Hour Division or your state's labor department. Many employment attorneys handle wage cases on contingency.

How Iowa differs from federal law

Iowa's minimum wage matches the federal minimum:

  • $7.25/hr — the federal minimum wage, which Iowa has adopted without increase
  • Iowa allows a tip credit — tipped employees can be paid $4.35/hr if tips bring total to $7.25/hr
  • Iowa has an initial employment wage of $6.35/hr for the first 90 days for workers under 20
  • Iowa law preempts local governments from setting higher minimum wages — a 2017 law overturned several local increases
  • No Iowa jurisdiction currently has a higher local minimum wage

Additional steps in Iowa

File wage complaints with the Iowa Division of Labor at (515) 281-3606 or iowadivisionoflabor.gov.

What you should NOT do

Don't accept illegal deductions. Your employer cannot deduct for cash register shortages, breakage, or uniforms if it would bring your pay below minimum wage.

Don't ignore tip credit violations. If you're a tipped employee and your tips + base pay don't reach $7.25/hr, your employer must pay the difference.

Don't sign away your rights. Any agreement to work for less than minimum wage is unenforceable under federal law.

Don't wait — the clock is ticking.

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This page is general legal information for Iowa, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Iowa.

You came here to know your rights — help someone else know theirs.

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