Iowa has no state overtime law, so federal FLSA rules decide your pay. Enter your rate and hours for an accurate Iowa paycheck estimate: 1.5x after 40 hours a week, no daily overtime rule.
Rules verified November 2026 · Sources: U.S. Department of Labor, Iowa Department of Inspections, Appeals and Licensing
By Mudassir Khan
Iowa has no state overtime law, so the federal Fair Labor Standards Act sets the rule: 1.5 times the regular rate for hours over 40 in a workweek, with no daily overtime. The minimum wage is $7.25 an hour in 2026. Iowa wage claims go to the Department of Inspections, Appeals and Licensing within 1 year.
Federal FLSA rules, Iowa framing. Each workweek stands alone.
Iowa wage claims go to the Department of Inspections, Appeals and Licensing within 1 year; overtime claims go to the federal DOL. Estimates only. Not tax, legal, or payroll advice. Confirm with your employer or a qualified professional.
Iowa never passed its own overtime statute, so the Fair Labor Standards Act applies directly: nonexempt employees earn at least 1.5 times the regular rate for hours over 40 in a workweek.
The Wage and Child Labor Unit of the Iowa Department of Inspections, Appeals and Licensing accepts wage claims under $6,500 filed within 365 days of when the wages were due. Pure overtime disputes are sent to the federal DOL instead.
Iowa taxes all income at a single 3.8% rate. Overtime pay is taxed exactly like regular pay, so the math on a big overtime week is simple to model.
Gross = (40 × rate) + (hours over 40 × rate × 1.5)
| Rule | Iowa |
|---|---|
| Overtime rule | Federal FLSA only: 1.5 times pay after 40 hours in a workweek |
| Minimum wage 2026 | $7.25 an hour (tipped cash wage $4.35) |
| State income tax | Flat 3.8% in 2026 |
| Claim agency | Iowa Department of Inspections, Appeals and Licensing, Wage and Child Labor Unit (claims under $6,500) |
| Claim deadline | 1 year from when wages were due; overtime claims go to the federal DOL |
| Worker | Math | Gross |
|---|---|---|
| $7.25/hr, 44 hours | $290.00 + $43.50 | $333.50 |
| $24/hr, 48 hours | $960 + 8 × $36 | $1,248.00 |
| $19/hr, 55 hours | $760 + 15 × $28.50 | $1,187.50 |
| $7.25/hr, 40 hours | 40 × $7.25, no overtime | $290.00 |
Example 2 is a common Iowa week: at $24 an hour, 48 hours pays $960 in regular pay plus 8 overtime hours at $36. If the unpaid amount tops $6,500, the claim skips the state unit and goes straight to the federal DOL or to court.
The $6,500 cap routes big claims elsewhere. The Iowa unit only accepts wage claims under $6,500. Larger disputes, and all pure overtime claims, belong with the U.S. Department of Labor or in court, so check the amount before you file in the wrong place.
365 days means 365 days. The director cannot accept a complaint filed more than 1 year after the wages became due. The deadline is firm, and the unit turns late claims away without an investigation.
Iowa can add liquidated damages. When a wage claim succeeds, Iowa law allows liquidated damages on top of the unpaid wages. Filing the state claim preserves that extra recovery, which a quiet settlement with the employer might not.
Like Iowa, Nebraska runs on federal overtime law alone: our Nebraska overtime calculator shows the same math at a $15 floor, and the Illinois overtime calculator covers a neighbor with a higher minimum wage. The federal baseline is explained in the FLSA overtime rules guide.
No. Iowa has no state overtime statute, so the federal Fair Labor Standards Act decides overtime: 1.5 times the regular rate for hours over 40 in a workweek, for nonexempt employees.
Overtime claims go to the Wage and Hour Division of the U.S. Department of Labor. Other wage claims under $6,500 go to the Iowa Department of Inspections, Appeals and Licensing within 1 year of when the wages were due.
$7.25 an hour, the federal floor, with a $4.35 cash wage for tipped workers.
No. Iowa has no daily overtime rule. Only the weekly line matters: hours over 40 in a workweek earn 1.5 times the regular rate, no matter how long any single day was.
Yes, at the same rate as regular pay: a flat 3.8% in 2026.
Yes, if nonexempt. A salary alone does not remove overtime rights in Iowa. Only employees who pass the FLSA exempt duties and salary tests can be denied overtime pay.
Rates and rules checked against these sources in November 2026.
Want the same math without the Iowa framing? Use the overtime pay calculator. Want the same math without the Iowa framing? Use the overtime pay calculator. Curious what the no tax on overtime deduction does to an Iowa paycheck? Try the deduction calculator, with one flat 3.8% state rate the federal deduction is easy to model.