Iowa Blocks Minimum Wage Hikes

Date: April 05, 2017

Iowa now has a uniform minimum wage. Gov. Terry Branstad signed a bill late last month preventing counties and cities from enacting local minimum wage hikes that conflict with the state minimum wage of $7.25 per hour.

“Governor Branstad’s signing of today’s bill is yet another example of his longstanding support of the small business community,” NFIB Iowa State Director Matt Everson said in a statement. “Our members sincerely appreciate his willingness to stand shoulder to shoulder with the state’s most vulnerable employers by ensuring that labor costs are stabilized throughout the state.”

The law will prevent confusion and inconsistency resulting from different minimum wage laws sprinkled across the state, particularly as such inconsistencies make it difficult for small businesses with several locations across different counties.

The law immediately overrides minimum wage increases made by Johnson, Linn, Polk, and Wapello counties. It also keeps municipalities from passing additional laws that conflict with state law, such as requiring additional employment leave, banning plastic bag use, or enacting a soda tax.

“Different county minimum wages create confusion, especially for cities that are in more than one county,” Branstad said after the signing. “This bill provides uniformity through the state on Iowa’s minimum wage. It does nothing to force businesses to pay employees less than they are currently paying.”


Related Content: Small Business News | Iowa | Minimum Wage

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