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Tipped Employees in Iowa

Filed under Managing the Workplace. Fact checked on May 25, 2012.

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Employers in Iowa must conform with these state rules regarding the treatment of tips received by employees.

In Iowa, for an employee of a restaurant, hotel, motel, inn or cabin, who customarily and regularly receives more than $30 a month in tips, a tip credit of up to 40 percent of the applicable minimum wage is allowed.

An employee may file a written appeal with the labor commissioner if the amount of tips received by the employee is less than the amount determined by the employer.

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