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May 18, 2017
2017-0821

Iowa enacts legislation to preempt local minimum wage, paid sick leave laws

Recently enacted HF 295 prevents local Iowa governments from passing and enforcing laws/ordinances (i.e., minimum wage increases, paid sick leave) to provide for conditions of employment that exceed or conflict with federal or state law. The new law also retroactively preempts any such ordinance enacted prior to the effective date of the Act.

As an example, the ordinance enacted in September 2015 to increase the Johnson County minimum wage to $10.10 is void and unenforceable as of March 30, 2017, the date HF 295 was signed into law by Iowa Governor Terry Branstad.

The Iowa state minimum wage is currently $7.25 per hour.

Ernst & Young LLP insights

Several states have recently passed legislation (i.e., Arkansas, Ohio, South Carolina) to halt the trend of cities/localities passing ordinances that increase the minimum wage or require paid sick leave for individuals working within the city's boundaries.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services — Employment Tax Advisory
• Debera Salam(713) 750-1591;
• Kristie Lowery(704) 331-1884;
• Kenneth Hausser(732) 516-4558;
• Debbie Spyker(720) 931-4321;

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