This bill proposes an increase in the state minimum hourly wage to $15.00 effective July 1, 2026, and establishes a new minimum wage of $14.10 for employees who have not completed 90 days of employment, also effective July 1, 2026. The current minimum wage of $6.20 and $6.35 for employees under 90 days of employment will be replaced with these new rates. Additionally, the bill mandates that the state minimum wage will be adjusted annually on July 1, starting in 2027, based on the percentage increase in federal social security benefits, ensuring that the wage will not decrease.

The bill amends Section 91D.1 of the Iowa Code, specifically updating paragraphs a and d to reflect these changes. The new legal language includes provisions for annual increases tied to federal social security benefits and clarifies that the state hourly wage cannot be decreased. This legislative change aims to enhance the financial well-being of workers in Iowa by aligning state wage standards with cost-of-living adjustments.