Iowa Minimum Wage Now $7.25

January 17th, 2008 Posted by Amelia

Governor Chet Culver signed legislation into law on January 25, 2007 to raise the Iowa state minimum wage. The bump occurred in two steps. The first increase went into effect on April 1, 2007, raising the minimum from $5.15 per hour to $6.20 per hour. On January 1, 2008, the second increase took place, raising the minimum wage another $1.05 from $6.20 to $7.25 per hour.

In less than one year, Iowa’s minimum wage jumped a whopping $2.10 per hour. As a result of this increase, Iowa joins the top tier of states regarding state minimum wage rates.

The rate for workers who earn tips went up as well, to $4.35 per hour. In addition, several “named enterprises” are now covered by the Iowa state minimum wage. Several industries are included in this group, such as all public agencies, residential facilities for the ill, elderly or handicapped. Facilities for gifted children, schools and preschools are also included in this group and must pay the state minimum wage.

Public transportation employees who work in a venue subject to local and state regulations are entitled to the state minimum. Laundry, dry cleaning and construction employees also must receive the state minimum wage.

Some businesses with revenue less than $300,000 per year are exempt from the state minimum wage law. If those companies engage in interstate commerce, though, the federal minimum wage of $5.85 per hour applies.

Daycare center employees are usually covered by the minimum wage law, even if the yearly revenue is less than $300,000. If the daycare center is an in-home facility it could be exempt. In-home centers that employ only immediate family members or those with fewer than 6 children are exempt from the state minimum wage law.

These changes in the minimum wage law, both state and federal, require Iowa businesses to update their labor law posters. Employing a labor law poster service is one way a company can keep up with the changes. These services automatically send out updated posters whenever the law changes.

In all, fourteen states increased the minimum wage with the new year.

Vermont, Missouri and New Mexico are among the fourteen states to raise its state minimum wage as of January 1, 2008. The increases in these fourteen states, however, are just the beginning of a year full of changes.

The past year has been a busy one for minimum wage changes, with a number of changes on both the federal and state levels.

On May 24, 2007, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law set up increases in the federal minimum wage as a three-step system. On July 24, 2008, the second step of the Fair Minimum Wage Act’s system goes into effect. The federal minimum wage will go up from $5.85 to $6.55 per hour.

Texas, Oklahoma, Utah and several other states connect the increases in their state minimum wage rates to when the federal minimum wage goes up. So, when the federal minimum wage increases on July 24, 2008, the minimum wage rates in these states will be increased, too.

Minimum wage in the District of Columbia is also tied to the federal minimum wage. The D.C. law, however, requires its minimum to be at least $1.00 more than the federal rate. On July 24, 2008, therefore, D.C.’s minimum wage rate will become $7.55 per hour, exactly $1.00 greater than the federal minimum of $6.55 per hour.

Employers must be aware that when any labor laws change, either state or federal, they must update their labor law posters. For more information businesses can go to www.laborlawcenter.com.

Last 10 posts by Amelia

« Arizona Minimum Wage Now $6.90
Massachusetts Minimum Wage Now $8.00 »
Posted in Employment Laws, Iowa, Minimum Wage, Wage and Hour

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