An Iowa employment contract is used to establish a relationship between an employer and employee and to define each party’s obligations and rights. The document allows the employee to understand their exact role and responsibilities, any benefits they may be entitled to, and their compensation. This contract allows for full transparency between the employer and employee and helps avoid misunderstandings.
The form also specifies if employment duration will be a fixed-term or “at-will,” meaning that either employee or employer may terminate the agreement at any time. If the contract is “at-will,” it should be specified how many days’ notice each party needs to provide prior to the termination of the agreement and whether the employee will be granted any severance.
Independent Contractor Agreement – Used by a freelancer and a client to establish a working relationship.
Subcontractor Agreement – General contractors use this contract to hire subcontractors to complete specific tasks on a project.
- Labor Statutes: Title 3 (Public Services and Regulation)
- Definition of Employee: § 91A.2(3)
- Minimum Wage: Federal Min. Wage – $7.25/hr (§ 91D.1(1)(b), 29 U.S.C. § 206)
- Overtime: Not mentioned in state statutes. Federal min. – one and a half (1.5) times the employee’s standard wage (29 C.F.R § 778.107).
- Record Keeping:
- Employers are obligated to keep payroll records, collective bargaining agreements, and purchase and sales records for a minimum of three (3) years (Iowa Admin. Code r. 875—216.5(91D)).
- Employers must keep basic employment records, wage rate tables, records of additions and reductions to wages, and order and shipping records for at least two (2) years (Iowa Admin. Code r. 875—216.6(91D)).
Permitted? Yes, at-will employment is permitted, meaning that employees may either quit or be fired at almost any time and for nearly any reason, as long as it does not conflict with a contract or violate state or federal laws. For example, an employee may not be terminated for the following reasons:
- Discrimination (§ 216.6)
- Military service (§ 29A.43)
- Jury duty (§ 607A.45)
- Refusing to make charitable donations (§ 70A.28(7))