2018 Iowa Tipped Minimum Wage
The 2018 Iowa Tipped Minimum Wage is $4.35.
Effective 2018-01-01Source: Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)Verified 2026-09-01
Compared with 2017
Every figure on this page is unchanged from 2017.
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Minimum cash wage | $4.35 | $4.35 | +$0 (+0.0%) |
Who it applies to
Tipped employees in Iowa
What changed this year, and why
Iowa's minimum cash wage for tipped employees was $4.35 per hour in 2018.
Common questions
- What is the minimum cash wage for tipped employees in Iowa in 2018?
- The minimum cash wage is $4.35 per hour. If an employee's cash wage and tips together do not average at least the regular minimum wage in any work week, the employer must pay the difference.
Who counts as a tipped employee
In Iowa, you count as a tipped employee if you customarily and regularly receive more than $30 a month in tips. Workers in restaurants, bars, hotels, and other service businesses often meet this threshold. Once you qualify as a tipped employee, your employer is allowed to pay you a lower cash wage than the standard minimum wage—specifically, as little as $4.35 per hour. This lower rate recognizes that tips are expected to make up a significant portion of your earnings. However, being classified as a tipped employee does not mean your employer can pay you any amount they choose; they must still comply with the rules about ensuring your total earnings reach at least the full minimum wage when your cash wages and tips are combined. If your tips fall short in any work week, your employer must cover the gap. Understanding whether you meet the $30-per-month threshold matters because it determines whether your employer can use the lower cash wage rate or must pay you the full minimum wage from the start.
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, the tip credit is the amount an employer can count toward the minimum wage obligation by using a tipped worker's tips instead of paying it directly in cash wages. Under Iowa law, an employer may pay a tipped employee a direct cash wage of $4.35 per hour, which is the minimum cash wage allowed. The full minimum wage is $7.25 per hour, so the tip credit represents the gap between that cash wage and the full minimum. This means the employer meets part of its minimum-wage obligation through the employee's tips rather than direct pay. For a tipped worker in Iowa, your paycheck will show at least $4.35 per hour in wages from your employer. If your tips in a given work week bring your total hourly earnings to $7.25 or above, the employer has met its obligation. However, if your combined cash wages and tips fall short of $7.25 per hour in any work week, the employer must make up the difference. The tip credit allows employers to pay lower direct wages to tipped workers, but it does not reduce the total compensation owed—your total earnings must still reach the full minimum wage.
If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour. 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)
When the tips do not get you to the minimum wage
In Iowa, tipped employees receive a cash wage of at least $4.35 per hour from their employer, with the expectation that tips will bring their total earnings up to the full minimum wage. However, tips can vary from week to week—some weeks may be slow, or a worker may have fewer shifts. Iowa law protects tipped workers by requiring the employer to check each work week individually. If the cash wages paid by the employer plus the tips received during that work week do not average out to at least the full minimum wage per hour, the employer is required to make up the difference. This means the employer must add enough pay to bring the worker's total hourly earnings up to the minimum wage for that particular week. The protection is calculated on a work-week basis, not averaged over a pay period or a month. For a tipped worker in Iowa, this rule ensures that even in a bad week for tips, your total compensation—cash wage plus tips—will never fall below the minimum wage. Your employer cannot offset a slow week against a busy week; each work week stands on its own.
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