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IA HF283

IA HF283
A bill for an act increasing the state minimum hourly wage and providing for subsequent increases by the same percentage as the increase in federal social security benefits.


summary

Introduced
02/10/2025
In Committee
02/10/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill increases the state minimum hourly wage to $10.00 as of July 1, 2025, $12.50 as of July 1, 2026, and $15.00 as of July 1, 2027. The bill increases the state minimum hourly wage for employees employed for less than 90 days to $9.10 as of July 1, 2025, $11.60 as of July 1, 2026, and $14.10 as of July 1, 2027. The bill also increases the state minimum hourly wage, including the minimum hourly wage established for employees employed for less than 90 days, annually on July 1, beginning July 1, 2028, by the same percentage as the cost-of-living increase, if any, in social security benefits effective as of the previous December, as authorized by the federal social security administration. In no case shall the state hourly wage be decreased.

AI Summary

This bill increases Iowa's state minimum hourly wage through a multi-year phase-up plan, starting at $10.00 on July 1, 2025, rising to $12.50 on July 1, 2026, and reaching $15.00 on July 1, 2027. For employees in their first 90 days of employment, the minimum wage will follow a similar escalation, beginning at $9.10 on July 1, 2025, increasing to $11.60 on July 1, 2026, and reaching $14.10 on July 1, 2027. Starting July 1, 2028, the bill mandates annual minimum wage increases tied to the cost-of-living adjustment for Social Security benefits, as determined by the federal Social Security Administration. This means that if Social Security benefits increase by a certain percentage in a given year, the state minimum wage will increase by that same percentage. Importantly, the bill includes a provision ensuring that the minimum wage can never decrease, providing a safeguard for workers against potential economic downturns. This legislation represents a significant upgrade from the previous minimum wage rates, which dated back to 2007-2008, and aims to provide more competitive wages for workers across the state.

Committee Categories

Labor and Employment

Sponsors (19)

Last Action

Introduced, referred to Labor and Workforce. H.J. 274. (on 02/10/2025)

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