From right-to-work protections to an OSHA-approved state safety plan, Iowa establishes clear legal guardrails while keeping mandates lean in many areas. For example, the state sets specific restrictions on non-compete agreements and layoff law requirements, but doesn’t impose regulations on PTO payouts or work breaks.
When it comes to talent and workforce management, Iowa-based employers need to comply with the following state employment laws:
The below information was last updated November 4, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to U.S. labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Iowa is one of 26 states that currently have right-to-work laws.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| Iowa Minimum Wage | The state of Iowa mirrors the federal minimum wage rate of $7.25, including the tipped minimum wage rate of $2.13 for employees who earn tips with their base pay. |
| Iowa Overtime Pay Laws | Iowa doesn't currently have any overtime pay laws or regulations. However, Iowa-based employers must still comply with the Fair Labor Standards Act's (FLSA) requirement that nonexempt employees receive 1.5 times their normal rate of pay when working over 40 hours a week. |
| Iowa Pay Equity Law | Under Iowa Code Chapter 216 (aka the Iowa Civil Rights Act), no employer in Iowa can refuse to hire, accept, register, classify, or refer for employment, to discharge any employee, or to otherwise discriminate in employment against any applicant for employment or any employee because of the age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion, or disability of such applicant or employee, unless based upon the nature of the occupation. If a person with a disability is qualified to perform a particular occupation, by reason of training or experience, the nature of that occupation shall not be the basis for an exception to the unfair or discriminatory practices prohibited by the act. |
| Iowa Pay Transparency Law | Iowa currently has no pay transparency laws or regulations. |
| Iowa Final Paycheck Law | In Iowa, employees who voluntarily resign from a job or are involuntarily terminated must receive their final paycheck by the next regular payday. |
| Iowa PTO Payout Laws | Iowa doesn’t have specific PTO payout requirements, as it bases such decisions on an employer's policy. It also has no regulations regarding the use of "use-it-or-lose-it" policies. |
| Iowa Paid Sick Leave (PSL) | Iowa currently has no paid sick leave laws or regulations. |
| Iowa Paid Family and Medical Leave (PFML) | Iowa currently has no PFML laws or regulations. However, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons. |
| Iowa Maternity Leave | Iowa doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
| Iowa Voting Leave Law | Under Iowa Code § 49.109, Iowa-based employers must provide employees with up to three hours of paid leave to vote in an election, unless the employee has three or more consecutive nonworking hours available to vote during the opening and closing of the polls. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
Iowa, however, also adopted and imposes additional, OSHA-approved regulations that meet or exceed those federal standards. Iowa’s State OSHA Plan is overseen by the Iowa Department of Inspections, Appeals, and Licensing.
Iowa currently has no work break laws or regulations.
As described by the Iowa Civil Rights Act, and enforced by the Iowa Civil Rights Commission, employers in Iowa are prohibited from discriminating against employees based on:
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Iowa also requires employers to comply with specific anti-harassment mandates, also outlined in the state’s Civil Rights Act. Employers must not, for example, engage in harassment based on one or more protected characteristics.
The state doesn't, however, require employees to complete any harassment or discrimination training courses.
| Iowa Non-Compete Agreement Laws | Iowa is one of several states that limit the use of non-compete agreements. Under Iowa Code § 135Q.2, such agreements are restricted for certain healthcare professionals. |
| Iowa Retirement Plan Laws | Iowa currently has no mandatory retirement plan laws or regulations. |
| Iowa Layoff Laws | Iowa’s Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide notice of a mass layoff trigger that differs from the federal WARN Act. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
