This bill proposes to increase the state minimum hourly wage in Iowa to $10.00 starting July 1, 2026, with subsequent increases to $12.50 on July 1, 2027, and $15.00 on July 1, 2028. For employees who have not completed 90 days of employment, the minimum wage will also rise to $9.10, $11.60, and $14.10 on the same respective dates. Additionally, beginning July 1, 2029, the state minimum wage will be adjusted annually based on the percentage increase in federal social security benefits, ensuring that the wage is never decreased.

The bill removes a provision that allowed certain tipped employees in the hospitality industry to have their wages calculated differently for minimum wage purposes. Furthermore, it introduces a new provision allowing counties or cities to set a minimum wage that exceeds both the state and federal minimum wage levels. This legislation aims to enhance the financial well-being of workers in Iowa by establishing a more robust minimum wage framework.

Statutes affected:
Introduced: 91D.1