A bill for an act increasing the state minimum hourly wage and providing for subsequent increases by the same percentage as the increase in federal social security benefits.

This Iowa bill (HF 2378) sets a phased increase to the state minimum wage: $10.00 per hour starting July 1, 2026; $12.50 on July 1, 2027; and $15.00 on July 1, 2028. It also establishes a lower minimum wage of $9.10, $11.60, and $14.10 for employees in their first 90 days of work, effective on the same dates. Beginning July 1, 2029, the wage will automatically rise each year by the same percentage as the federal Social Security cost-of-living adjustment, with no decreases allowed. The bill removes a tip credit for certain workers and allows counties or cities to set higher local minimum wages than the state rate.