2019 Iowa Tipped Minimum Wage
The 2019 Iowa Tipped Minimum Wage is $4.35.
Effective 2019-01-01Source: Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)Verified 2026-09-01
Compared with 2018
Every figure on this page is unchanged from 2018.
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Minimum cash wage | $4.35 | $4.35 | +$0 (+0.0%) |
Who it applies to
Tipped employees in Iowa whose employers are subject to the Iowa Minimum Wage Law
What changed this year, and why
For 2019, Iowa set the minimum cash wage for tipped employees at $4.35 per hour. Employers must ensure that cash wages plus tips received equal at least the full minimum wage for each work week.
Common questions
- What was the tipped minimum wage in Iowa for 2019?
- The minimum cash wage for tipped employees in Iowa in 2019 was $4.35 per hour. Employers must ensure that tipped employees receive at least the full minimum wage when cash wages and tips are combined for each work week.
Who counts as a tipped employee
In Iowa, you count as a tipped employee if your job regularly brings in more than $30 per month in tips. That threshold is the only test: if you clear it, your employer is allowed to pay you the lower cash wage set for tipped workers rather than the full state minimum wage. If your tips are sporadic or fall below that monthly amount, the special tipped-employee rate does not apply and your employer must pay you at least the regular minimum wage for every hour you work.
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
Iowa allows employers to take a tip credit, which means they can pay tipped workers a lower direct cash wage and count the employee's tips toward the state minimum wage. For 2019, the minimum cash wage an Iowa employer may pay a tipped employee is $4.35 per hour. That cash wage is the floor underneath the tip credit—the lowest amount the employer must hand you directly, with your tips expected to cover the gap between $4.35 and the full minimum wage. This arrangement is only lawful if you regularly earn more than $30 per month in tips. Your tips remain yours; the tip credit simply permits the employer to pay a reduced hourly rate on the assumption that tips will bring your total compensation up to at least the minimum wage.
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
Even in weeks when business is slow, Iowa employers cannot use a weak tip night as an excuse to pay you less than the minimum wage. The law requires that in every workweek, the cash wage your employer pays you plus the tips you actually receive must average at least $7.25 per hour for every hour you worked. If they do not—if your hourly cash wage plus your tips falls short of $7.25—then the employer is required to pay the difference out of their own pocket. This protection applies week by week, so a slow week cannot be offset against a busy one. The rule ensures that the reduced cash wage only works when tips are genuinely high enough to bring your pay up to the legal floor; when they are not, the employer bears the shortfall.
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