What is the minimum wage in Missouri?

The current minimum wage in Missouri is $11.15 per hour, which is higher than the federal minimum wage requirements. It’s set to increase in 2023. The Missouri minimum wage rate applies to nonexempt employees of private businesses, with some exceptions for retail or service businesses that generate less than $500,000 of gross revenue annually. Certain overtime pay laws apply for certain employees, and the Missouri minimum wage laws for tipped employees also vary. 

Missouri minimum wage laws

The purpose of minimum wage laws is to ensure employees receive fair compensation and are protected from labor exploitation. Federal and state minimum wage laws are designed to provide a minimum level of income in exchange for work, so employees can maintain a basic standard of living and access needs such as housing, food and other essentials.

Minimum wage increases

As of 2022, the minimum wage in Missouri is $11.15 per hour. Missouri has increased the minimum wage each year since 2015, starting from $7.65. As per the legislation of Proposition B, the state’s minimum wage will continue to increase by $0.85 per hour each year until 2023, at which time the wage will become stable at $12 per hour. The state law doesn’t allow the state minimum wage rate to be lower than the federal minimum wage.

Minimum wage exemptions

According to the Missouri Department of Labor and Industrial Relations, the state minimum wage doesn’t apply to employers in retail or service industries earning an annual gross income of less than $500,000. This means these employers can choose any rate of pay for employees. Minimum wage laws also don’t apply to public employers—only private employers. Other employees who are paid a salary to perform certain duties are exempt employees may not be entitled to federal minimum wage under the Fair Labor Standards Act.

Missouri minimum wage for servers and other tipped employees

Servers and other tipped employees typically have different rules when it comes to minimum wage requirements. Since they also receive tips as compensation, your tipped employees might receive a lower minimum wage amount.

Under Missouri minimum wage laws, employers must pay tipped employees half the state minimum wage rate. As of 2022, that means tipped employees must be paid regular wages of at least $5.575 per hour. However, every tipped employee must still make at least the state minimum wage of $11.15 per hour when their tips and hourly wages are combined. If the tips aren’t enough for an employee to earn $11.15 per hour, the employer must pay the difference. Employers that aren’t subject to minimum wage laws in Missouri should still take into account minimum wages for tipped employees who are covered by FLSA. 

Tip pooling

Some employers may require their employees to contribute to a tipping pool. Tipping pools are used to equally distribute tips to all eligible employees, often by hours or shifts completed. Employees might be required to contribute a portion or all of their tips. Employers, however, aren’t allowed to receive tips from the pool. 

Entitled employees must still be paid regular minimum wage. This means that if the tipping pool doesn’t provide enough compensation for the employee to be paid minimum wage, then the employer must make up the difference. Employees who received tips from the tipping pool but aren’t defined as tipped employees must still be paid regular minimum wage and not the tipped minimum wage. 

Types of tipped employees

While other states define tipped employees as those who receive a minimum amount from tips on a regular basis, Missouri doesn’t provide its own definition. Tipped employees often include:

• Servers
• Restaurant hosts
• Bartenders
• Estheticians
• Hair stylists

The federal definition of a tipped employee is someone who receives tips customarily and receives more than $30 monthly in tips on a regular basis. 

Tracking tipped employees’ wages

Employers should keep track of employee earnings and tips to ensure employees are fairly compensated according to minimum wage laws and regulations. Mandatory service charges, commissions and other forms of earnings might not be legally considered tips, so employers sometimes can’t count these earnings toward the minimum wage. They may choose to implement a wage and payroll reporting system that accurately accounts for cash and credit card tips, as well as various other earnings.

Missouri minimum wage overtime pay

Employees who are entitled to the minimum wage in Missouri are usually entitled to overtime pay as well. Overtime is calculated as at least 1.5 times the employee’s regular pay rate. Eligible employees are entitled to overtime pay once they work more than 40 hours in a week or more than 8 hours in a work day. Employees not entitled to Missouri minimum wage may still be entitled to overtime through FLSA coverage.

Consequences for failure to pay minimum wage rates

Should an employer fail to compensate an employee according to minimum wage law, then the employee may file a complaint with the DLS, which determines the difference between wages received and the minimum wage rate. The DLS requires any employer who fails to pay the required minimum wage rate to pay the full amount due plus an equal amount in liquidated damages, minus any wages that were paid. The employer may also be responsible for paying other costs, such as the employee’s attorney fees.

Staying compliant with Missouri minimum wage laws

If you’re a Missouri employer, it’s your responsibility to ensure you’re following all the Missouri minimum wage laws and labor laws in general. Unless you’re exempt due to grossing less than $500,000 per year, you must pay your employees at least the Missouri minimum wage. Here’s how you can avoid facing major financial consequences:

• Stay current. Minimum wage laws can change at any time. Ensure you or your HR department stays on top of those changes. Using an accountant or business attorney can help you stay compliant as well. 
• Use tech solutions. Using payroll software tools can help you avoid payroll mistakes and stay in compliance.  
• Budget for payroll. Reviewing your company budget regularly helps you identify waste and ensures you have the budget to pay your employees adequately.
• Pay over minimum wage. If you can afford it, consider paying your employees more than the Missouri minimum wage. If you’re exempt from paying the minimum wage, consider offering it anyway. This makes you more competitive in your recruitment efforts and may help you retain employees.

Frequently asked questions about Missouri minimum wage laws

What states have a minimum wage of $15 an hour?

As of 2022, California has a minimum wage rate of $15 per hour for employers that have 26 or more employees. The minimum wage for companies with fewer employees is $14 per hour. The District of Columbia has a minimum wage of $16.10 per hour. Some states that come close include Connecticut at $14, Massachusetts at $14.25 and Washington at $14.59. Multiple states, including Missouri’s neighbor, Illinois, have passed legislation that puts them on track to do so by 2025. Some individual cities also have a minimum wage of $15 or more, including Seattle and New York City.

What is a livable salary in Missouri?

The minimum amount required to meet basic needs including housing, food and healthcare is called a living wage or salary. The numbers are based on working full-time, or 2,080 hours per year. Missouri’s livable salary for one adult with no children is $16.29 per hour. For two adults who both work and have no children, the livable hourly wage is $12.85 each. Those numbers increase when there are children in the family. 

What is the minimum a salaried employee can make?

Missouri doesn’t have a defined minimum salary amount. According to Missouri minimum wage laws, however, if an employee in Missouri works 40 hours per week on average and is eligible for minimum wage, then they may be eligible for a minimum salary of $23,192 per year. In other words, unless an employee is exempt from receiving the minimum wage amount, their salary should be equivalent to at least $11.15 per hour for the hours they work. Nonexempt employees covered by FLSA are also entitled to a minimum federal salary.

What is the federal minimum wage?

The federal minimum wage for nonexempt employees covered by FLSA is $7.25 per hour, $3.90 under Missouri’s minimum of $11.15. The federal minimum wage for tipped employees is $2.13, while tipped employees in Missouri are entitled to $5.575 per hour. For both federal and state tipped minimum wage, employers must pay the difference to tipped employees whose regular wages and tips don’t equal the regular minimum wage rate.