What is the minimum wage in Mississippi?

With many states around the United States adjusting or raising the minimum wage, employers need to stay up to date about regulations to ensure their businesses are in compliance. Increased minimum rates can also affect your future business plans.Mississippi does not have a state minimum wage law, so it must abide by the federal minimum wage. That means the minimum wage in Mississippi is $7.25 per hour for nonexempt employees covered by the Fair Labor Standards Act (FLSA)

Mississippi Minimum wage laws

The FLSA enforces a minimum wage to protect employees from labor exploitation and ensure they receive fair compensation for work performed, including minimum wage and overtime pay. A minimum wage is often set according to the standard of living in a given region so that workers may have sufficient income with which to access basic essentials.

As Mississippi defers its minimum wage and other labor regulations to the FLSA, employers in Mississippi must likewise follow FLSA regulations. Employment issues and regulations are enforced by FLSA and not the Mississippi Department of Employment Security (MDES).

There have been several bills proposed to raise the Mississippi minimum wage, but none have been passed into law. These bills have aimed to either immediately enact a higher wage or to slowly phase in an increased hourly rate over a defined number of years.

Employers in Mississippi must display certain posters in the workplace for employees. Regarding the minimum wage, employers are required to display the FLSA Minimum Wage Poster. In addition to the English version, this poster is also available in Spanish, Korean and other languages.

Some employees may be exempt from the FLSA minimum wage and overtime pay requirements. Exemptions may apply to salaried employees who are employed in certain roles and meet the following exempt employee criteria:

• The employee must be paid on salary basis equal to at least $684 per week or $35,568 per year
• The employee must meet the appropriate job classification

The FLSA enforces its regulations with employers who fail to compensate nonexempt employees appropriately. According to the FLSA, “Willful violations may be prosecuted criminally and the violator fined up to $10,000. A second conviction may result in imprisonment.” Likewise, “Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to a civil money penalty of up to $1,000 for each violation.”

Mississippi minimum wage for servers and other tipped employees

Regular employees and tipped employees may sometimes be subject to separate minimum wage requirements in Mississippi. While regular employees are entitled to the statutory minimum wage, tipped employees are entitled to a minimum wage of $2.13 per hour as enforced by the FLSA. Commissions, mandatory service charges and other earnings don’t count toward the minimum wage requirements.

Tips must be given voluntarily by a client or customer and are the property of the employee. If tipped employees’ combined wages and tips do not equal the federal minimum wage rate, then the employer is responsible for making up the difference.

Tip credits

The FLSA permits employers to use a tip credit to meet their statutory minimum wage obligation. The maximum allowed credit is the difference between the $2.13 tipped employee minimum wage and the statutory minimum wage of $7.25, or $5.12 per hour. In certain situations, an employer may also claim additional tip credits to meet overtime pay requirements.

When employees perform dual roles in which they may receive tips for some duties but not others, an employer may only take a tip credit for the hours they work in the tipped role. If an employee performs related but non-tip producing duties, an employer may not take a tip credit if the time spent on related duties comprises more than 20% of the employee’s workweek.

Tip pooling

In some cases, employers are permitted to require employees to contribute some or all of their tips to a tip pool. These employees must regularly receive tips. According to the FLSA, tip pools may not include employees who do not normally receive tips, such as cooks and dishwashers.

Once all tips are pooled, they are distributed equally among eligible employees, often according to hours or shifts worked. Employers may not claim any tips from a pool.

Types of tipped employees

The FLSA defines tipped employees as those who regularly receive more than $30 a month in tips. This may include employees such as:

• Counter personnel
• Bussers
• Bartenders
• Servers
• Baristas
• Estheticians
• Hair stylists
• Bellhops

Make sure that tipped employees are compensated accurately

It’s important for employers to keep close track of employee wages, tips and other earnings. This helps ensure that employees are fairly compensated and that the business maintains compliance with Mississippi minimum wage laws under the FLSA. Some employers opt to use a payroll, wage and recordkeeping system that helps them accurately account for all cash and credit tips and other employee earnings.

Mississippi minimum wage overtime pay

Nonexempt employees in Mississippi are entitled to overtime pay under the FLSA. Overtime is calculated at one and a half times the minimum wage or an employee’s regular rate. Employers owe employees overtime pay when they work more than 40 hours in a workweek. Overtime pay is owed only for hours worked in excess of 40 per week.

Mississippi minimum wage FAQs

What states have a $15 an hour minimum wage?

No states currently have a $15 an hour minimum wage requirement, although some have started to raise their respective minimum wages to eventually reach this amount. The Mississippi minimum wage adheres to the FLSA requirement of $7.25 per hour, and the state has no pending legislation or scheduled plan to increase its rate to $15 per hour.

What is the minimum wage for a 16-year-old Mississippi?

The FLSA allows employers to pay employees under the age of 20 a reduced rate of $4.25 per hour. After 90 consecutive days of employment, employers must pay employees the federal minimum wage of $7.25 per hour.

What is a livable salary in Mississippi?

A livable salary is defined as an income that allows an individual to afford basic necessities, such as housing, health care, food and other essentials. The World Population Review suggests that a livable salary in Mississippi is $46,000 per year.

What is the minimum a salaried employee can make?

Mississippi does not have a defined minimum salary for employees and defers to the FLSA. The FLSA requires that salaried employees make at least $684 per week or $35,568 per year.

What is the federal minimum wage?

The federal minimum wage is $7.25 per hour. Mississippi has adopted this as its minimum wage for all nonexempt employees who perform work in the state.