Des Moines, Iowa Minimum Wage: Training Wage, Tips, Exemptions

The minimum wage in Des Moines, Iowa is $7.25 per hour, the same as the federal rate. Iowa law prevents Des Moines from setting a higher local rate, so that floor applies citywide. New hires can be paid $6.35 for their first 90 days, and tipped employees have a base rate of $4.35 per hour as long as tips bring them up to $7.25.

Why the Rate Can’t Go Higher in Des Moines

In 2017, the Iowa legislature passed House File 295, which blocks every city and county in the state from adopting a minimum wage above the state or federal rate. The bill voided the local wage ordinances that several Iowa counties had already put in place.1Iowa Legislature. House File 295 For anyone working in Des Moines, that means the number won’t move unless the Iowa legislature or Congress raises it.

Iowa Code § 91D.1 requires employers to pay whichever is higher, the state or federal rate. Both currently sit at $7.25, but if Congress raises the federal minimum, Iowa employers automatically owe the higher figure.2Iowa Legislature. Iowa Code 91D.1 – Minimum Wage Requirements

The 90-Day Training Wage

An employer can pay a new hire $6.35 per hour for the first 90 calendar days of employment. On day 91, the wage rises to $7.25 automatically. The training rate applies regardless of the worker’s age or prior experience, so an experienced hire can still be started at $6.35.2Iowa Legislature. Iowa Code 91D.1 – Minimum Wage Requirements

Tipped Workers

Employees in restaurants, hotels, and similar businesses who regularly take home more than $30 a month in tips can be paid a $4.35 base rate. That figure comes from a tip credit built into Iowa law that lets employers count up to $2.90 in tips toward the $7.25 requirement.2Iowa Legislature. Iowa Code 91D.1 – Minimum Wage Requirements

The math is checked weekly. If a tipped worker’s base pay plus tips averages less than $7.25 per hour across a workweek, the employer has to make up the difference. Slow weeks and off-season dips aren’t a defense.3Department of Inspections, Appeals, & Licensing. Wage

Who Isn’t Covered

Iowa exempts businesses with annual gross sales below $300,000 from the state minimum wage. Those employers may still be covered by the federal Fair Labor Standards Act if they meet its own tests, but very small operations that fall outside both laws have no statutory wage floor.

Iowa also incorporates the FLSA’s exemptions, which leave several categories of workers outside the minimum wage entirely:

  • Agricultural workers on small farms that used fewer than 500 “man days” of labor in any quarter of the prior year, along with family members of the farm employer, range livestock workers, and certain hand-harvest laborers.4U.S. Department of Labor. Fact Sheet 12 – Agricultural Employment Under the Fair Labor Standards Act
  • Outside sales employees whose primary duty is making sales away from the employer’s place of business. Phone and internet sales don’t count unless they supplement in-person visits.5U.S. Department of Labor. Fact Sheet 17F – Exemption for Outside Sales Employees Under the Fair Labor Standards Act
  • Seasonal amusement and recreational workers at operations that run seven months or less per year, or that meet the FLSA’s off-peak revenue tests.
  • Casual domestic workers, including occasional babysitters and companions who work on an irregular schedule.

Independent contractors are also outside Iowa’s wage protections. The state uses the employee definition in Iowa Code § 85.61 to draw the line, and misclassification is a common source of wage disputes.

Overtime Isn’t a State Matter Here

Iowa has no state overtime law. Time-and-a-half for hours worked beyond 40 in a workweek comes entirely from the federal FLSA, and the Iowa Department of Inspections, Appeals, and Licensing (DIAL) refers overtime complaints to the U.S. Department of Labor’s Wage and Hour Division.3Department of Inspections, Appeals, & Licensing. Wage

Salaried executive, administrative, and professional employees who meet the federal exemption tests have no state backstop requiring overtime. If they aren’t covered federally, they aren’t covered.

If You’ve Been Paid Less Than the Minimum

Wage claims in Iowa go to DIAL, not Iowa Workforce Development. DIAL accepts a claim only if the wages became due less than one year ago, the total owed is under $6,500, and the work was performed in Iowa.6Department of Inspections, Appeals, & Licensing. How Do I File a Wage Claim

Filing starts with DIAL’s Wage Claim Form, available in English and Spanish on the agency’s website. You’ll need the employer’s legal name, business address, and a supervisor’s name. Detailed records of dates and hours worked are what let the investigator calculate what you’re owed; pay stubs and any written agreement showing your rate make the claim stronger. An investigator contacts you for details, then contacts the employer, and if the employer can’t justify the shortfall, DIAL will take collection steps, including filing suit on your behalf.6Department of Inspections, Appeals, & Licensing. How Do I File a Wage Claim

Claims above $6,500 or older than a year fall outside DIAL’s jurisdiction. Those become private lawsuits, typically in small claims court for amounts up to $6,500 or in district court for larger sums.

The employer’s exposure is significant. Under Iowa Code § 91A.8, an employer who intentionally fails to pay wages owes the unpaid amount plus liquidated damages, court costs, and the employee’s attorney’s fees.7Justia Law. Iowa Code 91A.8 – Damages Recoverable by an Employee Liquidated damages run at 5 percent of the unpaid amount for each day the wages remain overdue, excluding Sundays, legal holidays, and the first seven days after the regular payday, capped at 100 percent of the unpaid wages. Even where the failure isn’t intentional, the employer still owes the back wages plus court costs and attorney’s fees.

Retaliation Is Prohibited

Iowa Code § 91A.10(5) bars employers from firing or punishing a worker for filing a wage complaint, assigning a wage claim, or cooperating with any action under the wage payment laws. The protection reaches beyond outright termination to cover cut hours, reassigned shifts, and similar reprisals.8Justia Law. Iowa Code 91A.10 – Settlement of Claims and Suits for Wages – Prohibition Against Discharge of Employee

An employee who is retaliated against has 30 days from the retaliatory action to file a complaint with DIAL’s director. If the investigation confirms the violation, the state brings the case in district court on the employee’s behalf, and remedies include reinstatement with back pay. The 30-day window is short, so if your treatment changes after you file a wage complaint, document it right away.