Employment and labor laws in Iowa [Updated 2024]

Employment laws aim to uphold a fair and safe environment for all employees. This includes protecting workers from discrimination, offering temporary leaves of absence for personal matters, and enforcing health standards to help avoid work-related injuries or accidents. 

US workplaces abide by federal, state, and sometimes local employment laws. While Iowa defers to the federal government on most laws governing work conditions, you still need to keep track of state-level statutes from the Iowa Civil Rights Act and Civil Code when hiring employees in the Hawkeye State. And some cities—like the capital, Des Moines—have their own civil rights departments with their own policies. 

If you want to comply with Iowa’s regulations with ease, scale your business with Rippling’s Professional Employment Organization service, which handles your taxes for you—ensuring you steer clear of any costly compliance mishaps. 

Employment vs. labor law: What’s the difference?

While the terms “employment law” and “labor law” are often used interchangeably, they typically cover different types of relationships between employers and workers. Here’s a breakdown of the distinctions:

• Employment law: Concerns issues between an employer and an individual employee—such as hours, wages, overtime, and workplace discrimination. 
• Labor law: Focuses on issues between an employer and a group of employees (e.g., a labor union)—such as union membership and collective bargaining agreements. 

Think of labor law as an extension of employment law that applies when employees unionize to collectively bargain with their employer. 

Wages and hours in Iowa

Iowa adheres to federal laws for minimum wages, maximum working hours, and overtime pay.

Minimum wage in Iowa

Iowa’s minimum wage is $7.25 an hour—the same as the federal minimum wage. It’s one of 21 states that pegs its state minimum wage to the federal minimum, which hasn’t changed since 2009. 

So, if you employ workers across different states, don’t assume the same blanket minimum wage applies (neighboring Illinois’s wage floor, for instance, is $14.00 an hour). No matter where your employees live, Rippling automatically flags wage violations based on state regulations to ensure compliance. 

Overtime pay in Iowa

Employees may need to occasionally work beyond the 40-hour workweek to finish a time-sensitive project or deal with unexpected job demands. According to overtime laws in Iowa, employers owe 1.5x pay for every hour over the standard 40 hours worked per week. 

It’s crucial to adhere to overtime pay requirements—in Iowa and wherever else your employees live. Rippling’s payroll software automatically adjusts pay rates when employees' hours trigger overtime pay requirements.

Breaks and rest periods in Iowa

Unlike many other states, Iowa doesn’t require employers to provide meal breaks for most adult employees. According to the Iowa Division of Labor, breaks are only required for:

• Minors under 16, who get a 30-minute break if they work more than five hours in a day (in accordance with child labor laws)
• Toilet breaks whenever needed
• Union members with breaks agreed upon in contracts (if applicable)
• Airline pilots and other worker classes governed by regulatory agencies to address safety concerns

Additionally, working mothers protected under the federal government’s Fair Labor Standards Act (FLSA) are entitled to break time for breastfeeding their nursing child. 

Leaves of absence in Iowa

Employees may need to take time off from work for pressing personal matters—like receiving treatment for a serious health condition or caring for a loved one. Under these extenuating circumstances, the Family and Medical Leave Act (FMLA) provides eligible Iowa employees with protected, unpaid leaves of absence. This leave is available for employees of:

• Private employers who have more than 50 employees for 20 weeks in the current or last calendar year
• Government agencies 
• Elementary or secondary schools

The FMLA is a federal program administered by the US Department of Labor, which Iowa’s Department of Administrative Services runs for state employees. Under the federal guidelines, employees are eligible for this leave if they’ve worked:

• At least 12 months total over the past seven years 
• At least 1,250 hours over the past year
• For an employer with 50 or more employees living within 75 miles of company headquarters

Employees can get 12 weeks of FMLA leave (either continuous or intermittent) per fiscal year for the following conditions:

• The birth or adoption placement of a new child
• Caring for a family member (spouse, child, or parent) with a health condition
• A serious personal health condition that impairs their ability to do their job
• When a family member in the military is called to active duty

Employees who are the spouse, child, parent, or next of kin of a sick or injured military service member get up to 26 weeks of caregiver leave. 

While FMLA leave is unpaid, employees or employers can typically choose to use types of accrued paid time off (like sick leave or vacation pay) to cover parts of the leave period.

Pregnancy disability leave in Iowa

The Iowa Civil Rights Act requires employers of four or more workers to provide eight weeks of unpaid leave to employees who experience issues related to pregnancy, like a miscarriage or gestational diabetes. Iowa law outlaws employment discrimination based on pregnancy and requires employers to treat pregnancy-related disabilities the exact same as other short-term disabilities. 

Other types of leave in Iowa

Apart from the federal guidelines under the FMLA, there are no Iowa laws requiring employers to provide paid or unpaid sick leave or vacation time, entrusting private employers to set their own leave policies. According to the Iowa Civil Code, employers are only required to provide employees with:

• Jury duty leave: Employers can’t penalize employees who respond to a jury summons or serve on a jury. If employees forfeit any wages gained from jury duty to their employer, they’re entitled to their regular pay for time off spent for their summons. 
• Voting leave: Employers have to give employees at least two consecutive hours to vote when polls are open. Employees can get paid voting leave if they request it in writing before election day. 

Rippling can help you customize leave policies for your Iowa employees and automate notifications to managers when workers are taking time off.

Workplace safety in Iowa 

Iowa employers have to uphold a safe working environment for their staff, which includes providing safety training for dangerous equipment and implementing protocols for workplace hazards. 

The Occupational Safety and Health Administration (OSHA) is a federal agency that sets and enforces safe workplace standards for employers across the US. OSHA has a State Plan with Iowa, meaning it enforces federal regulations through a state-run entity—in Iowa’s case, the Iowa Division of Labor and Services. The State Plan applies to most private employers, with some exceptions for workplaces that span state lines (like maritime employment, bridge construction projects along the Mississippi River, and aircraft crew). 

The Iowa OSHA office’s services include:

• Asbestos abatement
• Consultations for small and medium-sized businesses with hazardous worksites
• Voluntary Protection Programs (VPP) to establish safe workplace policies
• Reporting data on work-related injuries and illnesses
• Protections against whistleblowers who report unsafe work conditions

Iowa’s OSHA office also has compliance officers who inspect workplaces for dangerous conditions that pose risks of injury or illness. These inspections can be the result of:

• Regular scheduling
• Reports of imminent danger
• Workplace fatalities or injuries
• Other workplace complaints or referrals

Apart from federal guidelines, Iowa has state-specific regulations for railroad workers’ sanitation standards and hazardous chemicals. 

Rippling PEO offers a pay-as-you-go workers’ compensation insurance plan that helps you scale your business—in Iowa and elsewhere in the US—without paying exorbitant lump-sum fees. 

Discrimination and harassment laws in Iowa

The Iowa Civil Rights Act outlaws workplace discrimination based on:

• Race
• Sex
• Gender identity
• Sexual orientation
• Religion
• National Origin
• Age
• Color
• Disability
• Pregnancy

Iowa law considers harassment—which it defines as unwelcome and inappropriate behavior that humiliates, intimidates, or coerces someone—a form of discrimination. Harassing conduct can be physical, verbal, visual, or take the form of hazing. 

Employees can file discrimination complaints with the Iowa Civil Rights Commission (ICRC) or with the federal Equal Employment Opportunity Commission (EEOC). The two agencies cooperate on cases via a “work-sharing agreement,” but you should file with the ICRC if your workplace has less than 15 employees, at which point federal regulations kick in.

Iowa follows the EEOC’s federal guidelines for sexual harassment, which is defined by unwelcome verbal or physical conduct of a sexual nature that:

• Implicitly or explicitly affects an individual’s job status or employment opportunities
• Interferes with an employee’s work
• Creates a hostile work environment

Employers are held responsible for workplace sexual harassment when they knew or should have known about the conduct and didn’t take action. They’re also held liable when harassment by a supervisor results in a “tangible job action,” like hiring, firing, or failure to get a promotion. 

Unlike in other states, Iowa employment laws don’t require sexual harassment training. But the EEOC (which the state adheres to) strongly suggests employers train their workforce on how to identify and prevent sexual harassment. Rippling’s Learning Management System comes with pre-loaded sexual harassment courses to ensure employees get proper training. It also ensures employees can access mandatory training if their state of residence requires it. 

The EEOC and ICRC will look at the nature and context of alleged conduct on a case-by-case basis to determine whether it was severe enough to violate the law. Violations can result in severe fines and penalties, as state and federal authorities take any form of workplace discrimination and harassment seriously. 

Unions in Iowa

A labor union is a group of employees who join together to negotiate for better work conditions—like higher wages, better benefits, or rules governing promotions—as this collective bargaining bolsters their negotiating power. The National Labor Relations Act (NLRA) is a federal statute that guarantees all employees the right to:

• Create or join a trade union.
• Collectively bargain for work conditions through elected union representatives.
• File complaints with their employer to address deficient work conditions.
• Strike or picket when demands aren’t met.
• Refrain from joining a union.

The NLRA also outlaws employers from prohibiting, discouraging, bribing, or otherwise threatening employees who want to join a union.

While the NLRA’s statutes apply to all US employees, some states are “right-to-work,” meaning a jurisdiction where employees can’t be forced to join a union and pay dues as a condition of their employment. According to the Iowa Code, Iowa is a right-to-work state—while Iowans can join unions, they never must. According to the US Bureau of Labor and Statistics, 7.2% of Iowa employees were trade union members as of 2023. 

FAQs about Iowa labor and employment laws

Are independent contractors covered under Iowa employment laws?

Independent contractors typically aren’t afforded the same leave and wage entitlements as full-time employees. You can use Rippling’s classification analyzer tool to better distinguish the two worker classes, helping ensure you’re not mislabeling employees as contractors. 

Does at-will employment exist in Iowa?

Iowa recognizes at-will employment, meaning employers can terminate employees for almost any reason. That said, Iowa laws prohibit terminations that violate public policy. The Iowa Civil Rights Act also protects employees from being let go on the basis of discrimination. 

Does Iowa have pay transparency laws?

Since 2018, states across the US have either adopted or considered implementing pay transparency laws, which require employers to disclose salary ranges to both current and prospective employees. The intent is to prevent wage disparities between gender, race, age, and other classes and ensure equal pay for equal work. 

Iowa currently doesn’t have any pay transparency laws.

Are background checks legal in Iowa?

Iowa employers are permitted to run background checks. They can request criminal history checks from the state’s Division of Criminal Investigation (DCI) and conduct other pre-employment screenings to verify credentials. But keep in mind that some Iowa jurisdictions may impose restrictions. Des Moines, for instance, passed a law limiting criminal history checks until after an employee gets a job offer. 

Are whistleblowers protected in Iowa?

Yes. Iowa prohibits state and local agencies from retaliating against whistleblowers. Iowa’s OSHA office also protects whistleblowers who report unsafe work conditions. 

Is workers’ compensation coverage required in Iowa?

Yes. Most employers are required to offer workers’ compensation to cover job-related accidents, injuries, or illnesses. Agricultural businesses are exempt from the state requirement. Employees can file claims through the Iowa Workers’ Compensation office. 

Are there required healthcare benefits in Iowa?

The federal Affordable Care Act (ACA) requires employers of more than 50 full-time employees to provide health coverage or face financial penalties. Since there are no state statutes in Iowa requiring healthcare benefits, smaller-sized businesses technically don’t need to offer health insurance. But employers typically join group plans to ensure employees get covered. 

What employee protections are available in Iowa if layoffs occur?

The Iowa Workforce Development (IWD) office has an unemployment insurance (UI) scheme that offers temporary payments to individuals who lost their jobs through no fault of their own and are available to work. Iowa has no state laws regarding severance pay or mandatory notice periods, which are usually stipulated in an employment contract.

Are there restrictions on drug testing in Iowa?

While Iowa law allows employers to drug test prospective or current workers as a condition of employment, the test has to be during normal work hours, paid for by the employer, and only random if the tested employee has a "safety-sensitive position." Employers also have to provide employees with a written policy explaining the drug testing protocol.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.