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SF 2045

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.

2025-2026 Regular Session Introduced by Liz Bennett and 13 co-sponsors

Iowa bill ties state minimum wage to Social Security benefit increase percentages, automating annual adjustments without requiring legislative action each time.

Subcommittee: Driscoll, Donahue, and Pike.
#costofliving #federalgovernment #laborandemployment #minimumwage #salariesandwages #socialsecurity
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Bill Summary · SF 2045

Legislative bill overview

SF 2045 proposes to increase Iowa's state minimum wage and establish an automatic adjustment mechanism that ties future increases to the same percentage increases applied to federal Social Security benefits. This creates a dynamic minimum wage that adjusts annually without requiring new legislation each time an increase is deemed necessary.

Why is this important

Iowa's current minimum wage is $7.25 per hour (the federal floor), unchanged since 2009. This bill would meaningfully affect hundreds of thousands of low-wage workers and small businesses across the state. The automatic adjustment mechanism would modernize wage policy by removing the need for repeated legislative battles while theoretically keeping minimum wage aligned with broader economic trends reflected in Social Security adjustments.

Potential points of contention

  • Initial wage level unclear: The bill text doesn't specify what the new minimum wage would be set at, making it difficult to assess immediate economic impact on businesses and workers
  • Business compliance costs: Small employers, particularly in rural areas and agriculture-dependent regions, may face significant payroll increases; concerns about automation or reduced hours as offset
  • Social Security tie-in rationale: Linking to Social Security percentage increases (which reflect inflation and wage index changes) may not perfectly align with Iowa's specific economic conditions, cost of living, or labor market needs

Compiled from official sources — confirm details with the bill’s official record.

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