House File 2378 - Introduced HOUSE FILE 2378 BY GOSA , B. MEYER , LEVIN , WILBURN , MATSON , BROWN-POWERS , AMOS JR. , WICHTENDAHL , WILSON , RAMIREZ , KRESSIG , CROKEN , MADISON , JACOBY , GJERDE , OLSON , EHLERT , COOLING , WESSEL-KROESCHELL , GAINES , SRINIVAS , BAGNIEWSKI , KURTH , R. JOHNSON , and JAMES A BILL FOR An Act increasing the state minimum hourly wage and providing 1 for subsequent increases by the same percentage as the 2 increase in federal social security benefits. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5703YH (6) 91 je/js
H.F. 2378 Section 1. Section 91D.1, subsection 1, paragraphs a and d, 1 Code 2026, are amended to read as follows: 2 a. (1) The state hourly wage shall be at least $6.20 as 3 of April 1, 2007, and $7.25 as of January 1, 2008 $10.00 as of 4 July 1, 2026, $12.50 as of July 1, 2027, and $15.00 as of July 5 1, 2028 . 6 (2) The state hourly wage, including the state hourly wage 7 for the first ninety calendar days of employment provided in 8 paragraph “d” , shall be increased annually on July 1, beginning 9 July 1, 2029, by the same percentage as the cost-of-living 10 increase, if any, in federal social security benefits 11 authorized during the previous state fiscal year by the federal 12 social security administration pursuant to section 215 of the 13 federal Social Security Act, 42 U.S.C. §415. In no case shall 14 the state hourly wage be decreased. 15 d. An employer is not required to pay an employee the 16 applicable state hourly wage provided in paragraph “a” until the 17 employee has completed ninety calendar days of employment with 18 the employer. An employer shall pay an employee who has not 19 completed ninety calendar days of employment with the employer 20 an hourly wage of at least $5.30 as of April 1, 2007, and $6.35 21 as of January 1, 2008 , $9.10 as of July 1, 2026, $11.60 as of 22 July 1, 2027, and $14.10 as of July 1, 2028 . 23 Sec. 2. Section 91D.1, subsection 1, paragraph c, Code 2026, 24 is amended by striking the paragraph. 25 Sec. 3. Section 91D.1, subsection 1, Code 2026, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . e. A county or city may establish a minimum 28 wage that exceeds the state hourly wage and the federal minimum 29 wage. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill increases the state minimum hourly wage to $10.00 34 as of July 1, 2026, $12.50 as of July 1, 2027, and $15.00 as of 35 -1- LSB 5703YH (6) 91 je/js 1/ 2
H.F. 2378 July 1, 2028. The bill increases the state minimum hourly wage 1 for employees employed for less than 90 days to $9.10 as of 2 July 1, 2026, $11.60 as of July 1, 2027, and $14.10 as of July 3 1, 2028. 4 The bill also increases the state minimum hourly wage, 5 including the minimum hourly wage established for employees 6 employed for less than 90 days, annually on July 1, beginning 7 July 1, 2029, by the same percentage as the cost-of-living 8 increase, if any, in social security benefits effective as of 9 the previous December, as authorized by the federal social 10 security administration. In no case shall the state hourly 11 wage be decreased. 12 The bill strikes a provision permitting the amount paid to 13 an employee of a restaurant, hotel, motel, inn, or cabin, who 14 customarily and regularly receives more than $30 a month in 15 tips, to be deemed to be increased by a specified amount for 16 purposes of determining whether the employee is receiving the 17 state minimum hourly wage. 18 The bill authorizes a county or city to establish a minimum 19 wage that exceeds the state hourly wage and the federal minimum 20 wage. 21 -2- LSB 5703YH (6) 91 je/js 2/ 2