Iowa HF2378 increases the state minimum hourly wage and ties future increases to federal social security benefits.

Iowa HF2378 raises the state minimum hourly wage to $10.00 as of July 1, 2026, $12.50 as of July 1, 2027, and $15.00 as of July 1, 2028. The bill also mandates that the state minimum hourly wage, including for employees employed for less than 90 days, will increase annually on July 1, starting in 2029, by the same percentage as the cost-of-living increase in federal social security benefits. The bill removes a provision allowing certain tipped employees to be paid less than the state minimum hourly wage.

Iowa HF2378 increases the state minimum hourly wage and ties future increases to federal social security benefits.

Iowa HF2378 raises the state minimum hourly wage to $10.00 as of July 1, 2026, $12.50 as of July 1, 2027, and $15.00 as of July 1, 2028. The bill also mandates that the state minimum hourly wage, including for employees employed for less than 90 days, will increase annually on July 1, starting in 2029, by the same percentage as the cost-of-living increase in federal social security benefits. The bill removes a provision allowing certain tipped employees to be paid less than the state minimum hourly wage.