In March 2017, Governor Branstad signed HF295, a bill standardizing Iowa’s minimum wage at $7.25 and preventing municipalities from adopting a minimum wage different from the Iowa standard.

Background

Over the last few years, several counties had passed minimum wage ordinances greater than the state standard, which made it difficult for large employers operating throughout the state because of the varying minimum wage requirements.   Now, employers can choose to pay their employees greater than the minimum wage of $7.25, but municipalities cannot obligate them, through local laws, to pay employees more.

Impact on Employers

This new state minimum wage standard is said to encourage consistency and predictability. In addition to regulating the minimum wage, this new law prohibits municipalities from exceeding or conflicting with any state or federal law pertaining to “employment leave, hiring practices, employment benefits, scheduling practices, or other terms or conditions.”

If you have any questions about how to compensate your employees in order to comply with federal, state, or local laws contact your attorney for assistance.