2023 Iowa Tipped Minimum Wage
The 2023 Iowa Tipped Minimum Wage is $4.35.
Effective 2023-01-01Source: Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)Verified 2026-09-01
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Minimum cash wage | $4.35 | $4.35 | +$0 (+0.0%) |
Who it applies to
Tipped employees in Iowa whose employers are covered by the Iowa Minimum Wage Law.
What changed this year, and why
The tipped minimum cash wage in Iowa for 2023.
Common questions
- What is the tipped minimum cash wage in Iowa for 2023?
- The minimum cash wage an employer may pay a tipped employee in Iowa for 2023 is $4.35 per hour.
- What happens if my tips do not bring my total pay up to the regular minimum wage?
- If the cash wage paid by the employer and the tips received do not average at least the regular minimum wage per hour in a work week, the employer must pay the difference.
Who counts as a tipped employee
In Iowa, a tipped employee is someone who customarily and regularly receives more than $30 a month in tips. If you meet that threshold, your employer is allowed to pay you a lower direct cash wage than the standard minimum wage. This rule applies to workers in restaurants, bars, and other service industries where tips are a customary part of compensation. The $30-per-month figure sets the floor for what counts as a tipped worker under Iowa law; if you earn less than that in tips on a regular basis, you are entitled to the full minimum wage from your employer with no tip credit applied.
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
A tip credit is the difference between the direct cash wage an employer pays a tipped worker and the full minimum wage. In Iowa, the minimum cash wage a tipped employee can receive is $4.35 per hour. The employer takes a tip credit for the rest, counting on the worker's tips to bring total earnings up to at least $7.25 per hour, the full minimum wage. This arrangement lets employers pay a lower base wage to workers who regularly receive tips, but it comes with a safeguard: if the cash wage plus tips do not add up to the minimum wage in any given work week, the employer must pay the shortfall out of pocket.
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
If a tipped employee in Iowa does not earn enough in tips during a work week to bring their total compensation up to the full minimum wage, the employer is required to make up the difference. The minimum cash wage is $4.35 per hour, and the full minimum wage is $7.25 per hour. When the cash wage plus tips fall short of $7.25 per hour on average for the week, the employer must pay the gap directly. This protection applies week by week, so a slow week with fewer tips does not leave the worker earning below the legal floor. The employer bears the risk of shortfalls, not the employee.
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