Payment of Wages: Iowa
Federal law and guidance on this subject should be reviewed together with this section.
- Under the Iowa Wage Payment Collection Law, employers may pay wages in cash or by check. Employees also may be paid by direct deposit or electronic paycard if certain conditions are satisfied. See Wage Payment Methods.
- Iowa employers must pay employees on a monthly, semimonthly, or biweekly basis. Paydays must occur no more than 12 days after the pay period ends. See Pay Frequency.
- With employees' consent, Iowa law allows employers to make various deductions from employees' pay. See Permitted and Prohibited Wage Deductions.
- With each payment of wages, employers must provide each employee with a pay statement. Employers may provide pay statements electronically, if certain conditions are met. See Pay Statement Requirements.
- Employers must pay terminating employees no later than the next regular payday. See Termination Pay.
- Wages that are unclaimed for one year are considered abandoned. Employers must file an annual report of unclaimed wages with the state and notify affected employees. Penalties are imposed for noncompliance. See Unclaimed Wages.