Workers' Comp Rates — Class 9014

Workers' Comp for Janitorial in Iowa (2026)

Iowa's WC system is distinctive: TTD is calculated at 80% of spendable (after-tax) weekly earnings — not the typical 66.67% of gross — with an unusually high $2,350/week TTD cap for the 7/1/2025–6/30/2026 period. The NCCI filed a -2.5% rate decrease effective 1/1/2026, continuing Iowa's multi-year downward trend.

Competitive marketStatute: Iowa Code §85.1 et seq. (Workers' Compensation Act); employer insurance at §87.1, §87.14A; benefit calculation at §85.34, §85.61; penalty at §87.21 and §87.14AEffective: Current; 2026 rates effective 1/1/2026 (NCCI Iowa filing, -2.5% overall decrease approved by Iowa Insurance Division); benefit rates reset 7/1/2025 through 6/30/2026Last reviewed: Q2 2026
State
Iowa
Governing Statute
Iowa Code §85.1 et seq. (Workers' Compensation Act); employer insurance at §87.1, §87.14A; benefit calculation at §85.34, §85.61; penalty at §87.21 and §87.14A
NCCI Class Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers
Enforcement Agency
Iowa Division of Workers' Compensation (DWC), Department of Inspections, Appeals & Licensing; 6200 Park Ave, Des Moines, IA 50321
Civil Penalty
Failure to insure: willfully and knowingly operating without required WC coverage is a Class 'D' felony (Iowa Code §87.14A); employer also liable to injured worker for all damages in an action at law (§87.21), with no right to plead negligence defenses; injunction available via attorney general (§87.19); civil penalty up to $1,000 per violation (§87.11E)

How workers' comp works for janitorial in Iowa

Iowa is an NCCI state with a competitive private insurance market. The Iowa Division of Workers' Compensation (DWC), operating under the Department of Inspections, Appeals & Licensing, administers all claims and sets benefit rates annually each July 1. Iowa's benefit formula is unusual: TTD is paid at 80% of spendable (after-tax) weekly earnings, not the typical 66.67% of gross wage that most states use. This produces one of the highest maximum weekly TTD caps in the Midwest at $2,350/week. Coverage is mandatory from the first employee — Iowa has no employee-count threshold. The NCCI filed a -2.5% overall decrease to Iowa rates effective January 1, 2026, continuing a multi-year downward trend in Iowa loss costs.

Class code and rate (2026)

  • Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers. NCCI Iowa 2026 filing approved at -2.5% overall decrease effective 1/1/2026. Indicative market rate for Iowa 9014: approximately $1.95–$2.10/$100 payroll post-reduction. Confirm current class-specific rate via Iowa Insurance Division (iid.iowa.gov) or NCCI Class Lookup.
  • Code 9170 — Janitorial with above-ground window cleaning. Substantially higher rate; separate payroll records required.

Indemnity benefits (Iowa 2026)

  • Max weekly TTD/PTD/Death: $2,350 (effective 7/1/2025 through 6/30/2026; = 200% of Iowa SAWW of $1,174.98; per Iowa DWC Rate Table at dial.iowa.gov).
  • Min weekly TTD/HP: lower of $411 or injured employee's spendable earnings (effective 7/1/2025–6/30/2026; = 35% of SAWW).
  • Waiting period: 3 calendar days; first 3 days paid retroactively if disability exceeds 14 days (Iowa Code §85.34).
  • Iowa's benefit formula: 80% of spendable (after-tax) weekly earnings — computed using IRS dependency/exemption tables — not the 66.67% of gross used in most states. Higher-wage janitorial workers may hit the $2,350 cap quickly.
  • PPD benefits: paid per Iowa Code §85.34 injury schedule or whole-body ratings; PPD max $2,162/week (7/1/2025–6/30/2026).

Coverage thresholds and exemptions

  • Mandatory from first employee; no employee-count threshold (Iowa Code §87.1).
  • Limited exemptions: agricultural employers with certain seasonal farm laborers; domestic employees in a private home; sole proprietors and partners may elect coverage voluntarily.
  • Independent contractor test: Iowa applies a multi-factor "right-to-control" test; cleaning workers under a janitorial company's direction are almost universally employees.

Failure-to-insure penalty

Under Iowa Code §87.14A, willfully and knowingly operating a business without required WC coverage is a Class 'D' felony. Separately, an uninsured employer is liable to the injured worker for all damages in an action at law without the right to assert negligence defenses (§87.21). The Iowa DWC commissioner may notify the attorney general to seek an injunction prohibiting continued operation (§87.19). Civil penalties up to $1,000 per violation apply under §87.11E for other compliance failures.

Cost drivers specific to janitorial in Iowa

  • Top injuries (BLS NAICS 561720): slips/falls on wet surfaces, back/shoulder strains, chemical exposure — consistent with national profile; Iowa's large agricultural processing and food manufacturing facilities add heavier-duty industrial cleaning contracts.
  • Iowa's 80%-of-spendable-earnings formula produces higher weekly benefits for mid-wage earners than the standard 66.67%-of-gross formula; factor this into claim severity modeling.
  • Iowa's NCCI -2.5% rate decrease (1/1/2026) continues a positive trend; state has favorable loss experience relative to Midwest peers.
  • Bid-math note: at ~$2.00/$100, load WC at approximately 2.0% of gross wages in Iowa bids. The $2,350/week TTD cap means high-severity TTD claims can be expensive; strong return-to-work programs are critical.

Primary sources

Sources

This page is informational only. It does not constitute legal advice, tax advice, or a professional compliance determination. Laws vary by state and locality, change over time, and apply differently depending on your specific facts and circumstances. Before taking any action with legal or business consequences, consult a licensed attorney or CPA qualified in your jurisdiction.