Exemptions: Overtime & minimum wage - Iowa

Summary of differences between federal and state regulations

Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

To qualify for federal exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.

The salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $684 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour.

An Iowa employer may be required to pay a minimum salary of at least $500 per week, depending on the percentage of time spent performing exempt duties.

Iowa does not reference (and may not recognize) the “highly compensated employee” exemption for those earning more than $107,432 per year.

State

Contact

Iowa Workforce Development Iowa Division of Labor Services

Regulations

Iowa Administrative Rules (875) Chapter 218, Employees Employed in a Bona Fide Executive, Administrative, or Professional Capacity (Including any Employee Employed in the Capacity of Academic Administrative Personnel or Teacher in Elementary or Secondary Schools), or in the Capacity of Outside Salesperson

www.legis.iowa.gov/

Iowa Code §91D.1  Minimum wage requirements—exceptions.

Federal

Contact

The Department of Labor is the federal agency that monitors hours worked.

Regulations

Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees