Calculating overtime pay in Iowa mainly follows federal overtime laws.
This article will break down key topics surrounding Iowa’s overtime laws including overtime eligibility, regular rate of pay, and workweek definitions. We’ll also cover overtime calculations for hourly, salaried, and piece-rate employees, as well as special cases like multiple hourly rates and complex pay structures.
This Article Covers:
Understanding Overtime in Iowa
- Which Overtime Laws Apply in Iowa?
- What is the Regular Rate of Pay in Iowa?
- How Do You Define a Workweek in Iowa?
- How Much is Overtime Pay in Iowa?
- Who is Eligible for Overtime Pay in Iowa?
- Who is Exempt from Overtime Pay in Iowa?
- Can Employers Mandate Overtime Work in Iowa?
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Iowa
- How Do You Calculate Overtime for Hourly Employees in Iowa?
- How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Iowa?
- How Do You Calculate Overtime for Salaried Employees in Iowa?
Overtime for Complex Pay Structures in Iowa
Additional Considerations for Iowa Overtime
- Is Compensatory Time Instead of Overtime Allowed in Iowa?
- Does Iowa Include Paid Time Off in Overtime Calculations?
Understanding Overtime in Iowa
Which Overtime Laws Apply in Iowa?
In Iowa, when employees work beyond 40 hours a week, they are entitled to an overtime pay of 1.5 times their regular rate of pay.
While Iowa does not have its own state-specific overtime law, it follows the federal Fair Labor Standards Act (FLSA). This means that most non-exempt employees must receive overtime unless they fall under specific exemptions.
Learn more about Iowa Overtime Laws.
What is the Regular Rate of Pay in Iowa?
An employee’s regular rate of pay in Iowa is calculated by dividing an employee’s total earnings for a period by their total hours worked.
Regular Rate for the workweek = Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek
How Do You Define a Workweek in Iowa?
A workweek in Iowa is defined as a fixed 168-hour period that runs from 12:00 a.m. on Sunday to 11:59 p.m. on Saturday. All hours worked during this period must be recorded to determine if an employee is eligible for overtime.
How Much is Overtime Pay in Iowa?
Overtime pay in Iowa is set at 1.5 times the employee’s regular rate of pay. Currently, Iowa follows the federal minimum wage of $7.25. This sets the minimum overtime rate at $10.87 per hour.
Overtime Pay = Regular Hourly Pay Rate x 1.5
Overtime Pay = $7.25 x 1.5
Overtime Pay = $10.87 per hour
Who is Eligible for Overtime Pay in Iowa?
Most workers in Iowa are eligible for overtime pay as long as they work more than 40 hours in a workweek and do not fall under any exemptions.
The Fair Labor Standards Act (FLSA) sets the rules for overtime eligibility, covering most hourly employees and some salaried workers who earn below the exemption threshold.
Who is Exempt from Overtime Pay in Iowa?
In Iowa, certain employees are exempt from overtime pay requirements under the FLSA. These exemptions typically apply to individuals in executive, administrative, and professional roles who meet specific criteria related to their job duties and salary.
As of 2025, the minimum salary threshold for these exemptions is set to $684 per week ($35,568 annually). For highly compensated employees, the threshold is $107,432 per year, including at least $684 per week paid on a salary or fee basis.
Federal law also exempts other workers from overtime pay, including:
- Aircraft salespeople
- Airline employees
- Amusement/recreational employees in national parks/forests/Wildlife Refuge System
- Announcers, news editors, and chief engineers at major radio or TV stations
- Babysitters on a casual basis
- Boat salespeople
- Buyers of agricultural products (poultry, egg, milk, etc.)
- Companions for the elderly
- Country elevator workers (rural)
- Criminal investigators receiving availability pay
- Domestic employees who live in
- Domestic workers
- Employees in national parks, amusement, or recreation facilities
- Farm implement salespeople
- Federal criminal investigators
- Firefighters working in small (less than 5 firefighters) public fire departments
- Fishing industry workers
- Forestry employees of small (less than 9 employees) firms
- Fruit & vegetable transportation employees
- Government employees
- Highly compensated employees earning at least $107,432 per year
- Homeworkers making wreaths
- House parents in non-profit educational institutions
- Independent contractors (under specific conditions)
- IT personnel earning at least $27.63 per hour
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Lumber operations employees of small (less than 9 employees) firms
- Motion picture theater employees
- Newspaper delivery workers
- Newspaper employees of limited circulation newspapers
- Police officers working in small (less than 5 officers) public police departments
- Radio station employees in small markets
- Railroad employees
- Seamen on American vessels
- Seamen on other than American vessels
- Sugar processing employees
- Switchboard operators
- Taxicab drivers
- Television station employees in small markets
- Truck and trailer salespeople
- Volunteers in religious, non-profit, charitable, or educational organizations
- Workers in maple syrup production
- Youth employed as actors or performers
- Youth employed by their parents
For a complete list of Iowa overtime exemptions, you may check with this Fact Sheet #17A from the US Department of Labor.
Can Employers Mandate Overtime Work in Iowa?
Neither Iowa labor laws nor federal laws do not specifically prohibit mandatory overtime.
This means employers can require employees to work extra hours as long as they follow the Fair Labor Standards Act (FLSA) guidelines and provide the required overtime pay for hours worked beyond 40 in a workweek.
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Iowa
How Do You Calculate Overtime for Hourly Employees in Iowa?
To understand overtime calculations for hourly employees in Iowa, take the following example.
John is an hourly employee and earns $8 per hour. He has worked 47 hours in a specific week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:
Since John earns $8 per hour, that would automatically be his regular rate of pay. |
Multiply the regular pay rate by 1.5. John’s overtime rate would then be: ($8 x 1.5 = $12.00) |
If John worked 47 hours in a week, his overtime hours would be seven: (47 hours – 40 hours = 7 hours). |
Multiply the overtime hours by the overtime rate. From the example, John’s overtime pay would be a total of: (7 hours x $12.00 = $84.00). |
The regular rate can change if the employee gets extra compensation or incentives during the week.
How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Iowa?
If an employee works multiple jobs at different pay rates in the same week, their regular hourly rate is calculated using a weighted average.
To find this rate, you add up all their earnings from the week and divide by the total hours worked.
For example, if an employee worked 47 hours in a week and earned a total of $800, their overtime pay would be calculated as follows:
To calculate the regular rate of pay, we will need to divide weekly earnings by the total hours worked: ($800 ÷ 47 = $17.00 per hour). |
Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $17, the overtime rate would then be: ($17.00 x 1.5 = $25.50 per overtime hour). |
The employee worked 47 hours, overtime hours would be seven: (47 hours – 40 hours = 7 overtime hours). |
Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be: ($25.50 x 7 = $178.50). |
Learn more about Iowa hourly employee rights.
How Do You Calculate Overtime for Salaried Employees in Iowa?
To calculate overtime for salaried employees, the first thing that needs to be done is calculate their regular rate of pay.
Let’s say an employee earns $350 for a 35-hour workweek and they work 45 hours during the week. Their overtime pay can be calculated as follows:
Given the employee is paid a weekly salary, their hourly rate is calculated by dividing their salary by the number of hours it covers: ($350 ÷ 35 hours = $10.00 per hour) |
Multiply the regular pay rate by 1.5 to get the overtime rate. With a $10.00 regular hourly rate, the overtime rate would then be: ($10.00 x 1.5 = $15.00 per overtime hour). |
The employee worked 45 hours for the week, so the number of overtime hours eligible for overtime pay would be: (45 hours -40 hours = 5 overtime hours) |
Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be: ($15.00 x 5 = $75.00). |
For salaries covering longer periods, they will need to be converted to a weekly amount. The following formulas will help you do just that:
- Monthly salary: Multiply by 12 and divide by 52.
- Semimonthly salary: Multiply by 24 and divide by 52.
For example, a $1,560 monthly salary or a $780 semimonthly salary for a 40-hour workweek equals an hourly rate of $9.
Learn more about Iowa salaried employee rights.
Overtime for Complex Pay Structures in Iowa
How Do You Calculate Overtime Pay for Piece Rate Employees in Iowa?
Piece-rate workers in Iowa are entitled to an extra half of their regular hourly rate for every hour worked beyond 40. This is considering that they have already been paid their normal rate through piece work or other payments.
To help understand this further, let’s have a look at an example:
If an employee works 50 hours and earns $600 from piece work, their regular hourly rate would be $12.00 ($600 ÷ 50).
For the 10 overtime hours, they get an extra $6.00 per hour, adding $60.00 to their total pay. Their final weekly earnings would then be:
Total Regular Earnings + Overtime Pay = $660.00.
Additional Considerations for Iowa Overtime
Is Compensatory Time Instead of Overtime Allowed in Iowa?
Compensatory time (comp time) refers to paid time off given instead of overtime pay. In Iowa, public agencies are allowed to provide comp time.
Law enforcement, firefighters, and emergency responders can earn up to 480 hours of compensatory time. Other local government employees can earn up to 240 hours.
These hours are not counted as part of the workweek when calculating overtime, and the employee is paid their regular hourly rate for this time off.
Does Iowa Include Paid Time Off in Overtime Calculations?
In Iowa, overtime pay is calculated based on hours actually worked over 40 in a workweek. Paid time off (PTO)—such as holidays, vacation, or sick leave—is not considered hours worked when calculating overtime.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
