HF 110 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn overtime compensation. It allows taxpayers to subtract the portion of their compensation earned at one and a half times their regular rate from their taxable income. These provisions would apply to tax years beginning on or after January 1, 2026.
HF 1024 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn compensation at a rate of one and a half times their regular pay by allowing them to subtract this income from their taxable earnings. The bill amends the state's tax code to implement this exclusion. If enacted, these provisions would apply to tax years beginning on or after January 1, 2026.
SF 101 increases Iowa's state minimum hourly wage to $15.00 for most workers starting July 1, 2025, and sets a separate $14.10 minimum for new employees during their first 90 days of employment. The bill automatically raises both wage rates annually on July 1 beginning in 2026, using the same percentage as federal Social Security cost-of-living adjustments. It ensures the minimum wage never decreases and applies to all employers covered by Iowa's wage laws.
SF 147 strengthens wage payment protections for Iowa employees by requiring employers to prove deductions are lawful and obtain written employee authorization for them. It mandates clear written notices about pay schedules, wage calculation methods, and changes affecting pay, plus detailed pay statements showing hours worked, sales, or miles earned. Employers face penalties for non-payment, including liquidated damages and attorney fees, while prohibiting retaliation against employees who file complaints or cooperate in investigations. The bill directly affects all Iowa employers and their workers by clarifying wage transparency and enforcement mechanisms.
HF 184 creates strict liability for employers who hire minors in Iowa. It requires employers to pay for any injury or death a minor employee suffers while working, without needing to prove the employer was negligent. This law directly affects businesses employing minors, such as retail or agricultural employers, by shifting the legal burden to them for workplace harm. The bill overrides previous rules (section 92.24) to ensure minors can seek compensation for work-related injuries or deaths.
SF 187, titled the "Pay Transparency and Fairness Act," prohibits employers in Iowa from restricting employees' ability to discuss or share wage information, requiring waivers for such discussions, or retaliating against employees for these activities. It also bans employers from seeking salary history during hiring (except asking about desired salary) and mandates that job postings include the minimum pay rate, including overtime and tips. The bill revises wage discrimination defenses to require employers to prove pay differences are based on legitimate, job-related factors like experience - not protected characteristics - and meet strict business necessity standards. These changes apply to all employers covered under Iowa's Civil Rights Act of 1965.
HF 283 raises Iowa's minimum hourly wage to $10.00 starting July 1, 2025, then to $12.50 on July 1, 2026, and $15.00 on July 1, 2027. It establishes a lower starting wage of $9.10 for new employees during their first 90 days of employment, increasing to $11.60 and $14.10 in 2026 and 2027 respectively. After 2027, the minimum wage will automatically increase annually on July 1 by the same percentage as the federal Social Security cost-of-living adjustment. The bill ensures the wage never decreases and affects all hourly workers in Iowa, including new hires during their initial 90-day period.
HF 360 would exclude overtime pay from Iowa's individual income tax calculation. Specifically, it removes from taxable income the portion of compensation earned for hours worked beyond 40 in a workweek, paid at rates of 1.5 to 2 times the regular wage under federal law (29 U.S.C. §207). This change directly affects Iowa workers who earn overtime pay, reducing their taxable income for those hours. The policy takes effect for tax years beginning January 1, 2026. The bill does not alter federal overtime rules but changes how Iowa taxes that specific income.
HF 349 increases Iowa's state minimum hourly wage to $13.50 effective July 1, 2025. It requires all Iowa employers covered by the federal Fair Labor Standards Act to pay employees the higher of the state minimum wage or the current federal minimum wage. The bill removes a previous exception that allowed employers to pay less than the state minimum wage to employees working fewer than 90 days, ensuring all covered employees earn at least the state minimum wage. This directly affects all hourly workers in Iowa covered by the Fair Labor Standards Act.
HF 375 proposes setting Iowa's minimum hourly wage for direct care professionals at $20.00 starting July 1, 2025, with a $19.10 minimum for those with less than 90 days of employment. It directly affects employers in nursing facilities, home care, and child care centers who hire workers providing personal care, health services, or support for people with illnesses or disabilities. The bill defines "direct care professionals" to include home health aides, certified nurse aides, and similar roles. This state wage requirement will apply instead of the federal minimum wage if it is lower. The bill is currently in the Labor and Workforce committee after introduction on February 13, 2025.
