2017 Iowa Tipped Minimum Wage
The 2017 Iowa Tipped Minimum Wage is $4.35.
Effective 2017-01-01Source: Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)Verified 2026-09-01
Compared with 2016
Every figure on this page is unchanged from 2016.
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Minimum cash wage | $4.35 | $4.35 | +$0 (+0.0%) |
Who it applies to
Employers in Iowa who pay tipped employees
What changed this year, and why
In 2017, Iowa's minimum cash wage for tipped employees was $4.35 per hour.
Common questions
- What was the tipped minimum cash wage in Iowa in 2017?
- The minimum cash wage was $4.35 per hour for tipped employees. Employers must ensure that the cash wage and tips received together equal at least the full minimum wage in every work week; if not, the employer must pay the difference.
Who counts as a tipped employee
Under Iowa law, a worker is considered a tipped employee if they customarily and regularly receive $30 per month or more in tips. Once a worker meets that threshold, their employer is allowed to pay them a lower direct hourly wage — as little as $4.35 per hour — instead of the full minimum wage. Workers in Iowa who earn fewer than $30 in tips over the course of a month do not qualify for this lower cash wage and must be paid the regular minimum wage by their employer. The $30-per-month figure is the gate that determines whether the tipped-employee rules apply at all in Iowa.
If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
What a tip credit is, and the cash wage underneath it
In Iowa, when a worker customarily and regularly receives more than $30 a month in tips, the employer may pay a direct cash wage of $4.35 per hour instead of the full minimum wage. The difference between that cash wage and the full minimum wage is the tip credit: the employer counts the worker's tips toward meeting the minimum wage obligation rather than paying the full amount out of pocket. The cash wage of $4.35 is the lowest hourly amount the employer is required to pay before tips are factored in. This arrangement only applies to workers who meet the $30-per-month tip threshold in Iowa; workers below it must receive the full minimum wage from their employer directly.
I'm a tipped employee. Can my employer pay me less than minimum wage? If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
When the tips do not get you to the minimum wage
Iowa requires employers to check a tipped employee's earnings on a work-week basis. If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference. This means the tip credit is not a blanket reduction: in a slow week where tips fall short, the employer must top up the employee's pay so that total hourly earnings reach the full minimum wage. The employer bears the risk of shortfalls, not the worker. Even though Iowa allows a cash wage as low as $4.35 per hour for tipped employees, the employer cannot rely on the tip credit to leave the employee below minimum wage in any given week.
If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
- Minimum cash wage
If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour.
Other years
Every Iowa Tipped Minimum Wage year · Tipped Minimum Wage in every state