{"id":137787,"date":"2024-07-12T17:42:25","date_gmt":"2024-07-12T15:42:25","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=137787"},"modified":"2024-12-09T14:23:54","modified_gmt":"2024-12-09T12:23:54","slug":"missouri-minimum-wage","status":"publish","type":"post","link":"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/","title":{"rendered":"What Is the Missouri Minimum Wage?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Like many other parts of the country, Missouri has its own <\/span><b>state-specific minimum wage law<\/b><span style=\"font-weight: 400;\">. This law sets the standard for the <\/span><b>lowest amount that employers can legally pay their workers<\/b><span style=\"font-weight: 400;\">, ensuring that employees receive <\/span><b>fair compensation<\/b><span style=\"font-weight: 400;\"> for their labor. In today\u2019s <\/span><b>guide for employers<\/b><span style=\"font-weight: 400;\">, we will explore the current <\/span><b>Missouri minimum wage <\/b><span style=\"font-weight: 400;\">and share <\/span><b>best practices<\/b><span style=\"font-weight: 400;\"> to help you comply with all of <\/span><b>Missouri\u2019s state-specific labor laws<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#How\">How Minimum Wage Works in the U.S.<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Missouri\">The Missouri Minimum Wage<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Exemptions\">Exemptions &amp; Special Cases<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Additional\">Additional Missouri State Labor Laws<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Enforced\">How Are Missouri Labor Laws Enforced?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Practices\">Wage Law Compliance Best Practices<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Factorial\">How Factorial Can Help You Comply with Missouri Wage Laws<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/factorialhr.com\/payroll\">What can you do with Factorial&#8217;s payroll management software?<\/a> \ud83d\ude80<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.co.uk\/request-demo\"><img decoding=\"async\" class=\"aligncenter wp-image-130408 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg\" alt=\"factorial hr software demo\" width=\"818\" height=\"281\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-768x263.jpg 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value.jpg 800w\" sizes=\"(max-width: 818px) 100vw, 818px\" \/><\/a><\/p>\n<h2><b><a name=\"How\"><\/a>How Minimum Wage Works in the U.S.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The United States operates a <\/span><b>tiered minimum wage system<\/b><span style=\"font-weight: 400;\">, with varying rates set at the <\/span><b>federal, state, and municipal levels<\/b><span style=\"font-weight: 400;\">. This creates a complex system for determining the minimum wage for workers across the United States.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Federal Minimum Wage<\/b><span style=\"font-weight: 400;\">. The federal minimum wage, established by the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/fair-labor-standards-act\/\"><span style=\"font-weight: 400;\">Fair Labor Standards Act<\/span><\/a><span style=\"font-weight: 400;\"> (<\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FLSA<\/span><\/a><span style=\"font-weight: 400;\">), serves as the baseline wage for non-exempt employees nationwide. The current federal minimum wage stands at $7.25 per hour.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State Minimum Wage<\/b><span style=\"font-weight: 400;\">. Many states have enacted their own minimum wage laws. These state minimum wages often exceed the federal rate, aiming to align with the local cost of living and labor market conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Municipal Minimum Wage<\/b><span style=\"font-weight: 400;\">. A growing number of cities and counties have also implemented their own minimum wage limits, often higher than both state and federal minimum wage rates. These municipal-level minimum wages reflect the unique economic circumstances of specific localities.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Missouri\"><\/a>The Missouri Minimum Wage<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/labor.mo.gov\/\" target=\"_blank\" rel=\"noopener\"><b>Missouri Department of Labor and Industrial Relations<\/b><\/a><span style=\"font-weight: 400;\"> updated the Missouri minimum wage this year to <\/span><b>$13.75 per hour<\/b><span style=\"font-weight: 400;\">, effective January 1, 2025.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At a minimum, <\/span><b>all private businesses in Missouri must pay the $13.75 hourly rate<\/b><span style=\"font-weight: 400;\">, with a few exceptions (as we will see below). Missouri&#8217;s minimum wage law <\/span><b>does not apply to public employers<\/b><span style=\"font-weight: 400;\">. Missouri&#8217;s minimum wage is scheduled for an additional wage increase to $15.00 effective January 1, 2026. Future minimum wage increases will be decided based on the Consumer Price Index beyond 2026.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, what about tipped employees?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rules are a little different here. Employers in Missouri must pay <\/span><b>tipped employees<\/b><span style=\"font-weight: 400;\"> at least <\/span><b>50 per cent of the Missouri minimum wage<\/b><span style=\"font-weight: 400;\">. They must also cover any tip losses to ensure the employee\u2019s<\/span><b> total compensation equates to a minimum of $13.75 per hour<\/b><span style=\"font-weight: 400;\">. Similarly to the state minimum wage increase in 2026, tipped employees will also see an increase in their minimum wage ($7.50 per hour).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Is anyone else <\/span><b>exempt <\/b><span style=\"font-weight: 400;\">from the Missouri minimum wage?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, there are a few <\/span><b>additional exemptions and special cases<\/b><span style=\"font-weight: 400;\">, as we will see in the next section.<\/span><\/p>\n<h2><b><a name=\"Exemptions\"><\/a>Exemptions &amp; Special Cases<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the Missouri minimum wage applies to <\/span><b>most adult workers<\/b><span style=\"font-weight: 400;\"> in the state, there are certain <\/span><b>exemptions <\/b><span style=\"font-weight: 400;\">that you need to be aware of.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an <\/span><b>overview <\/b><span style=\"font-weight: 400;\">of these exemptions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tipped employees<\/b><span style=\"font-weight: 400;\">. As we just saw, tipped employees must be paid at least 50% of the minimum wage (currently $6.88 per hour). Employers must also pay any amount necessary to ensure their total earnings meet or exceed the full Missouri minimum wage of $13.75 per hour\u200b.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Retail or service<\/b><span style=\"font-weight: 400;\">. Retail or service businesses with an annual gross income of less than $500,000 can pay employees less than the Missouri minimum wage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Full-time students<\/b><span style=\"font-weight: 400;\">. Employers can pay certain full-time students working part-time less than the Missouri minimum wage, as long as the wage is at least 85% of the minimum. This approach allows students to gain work experience while continuing their education.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Agricultural and farm employees<\/b><span style=\"font-weight: 400;\">. Most agricultural and farm employees are exempt from the Missouri minimum wage.<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Additional\"><\/a>Additional Missouri State Labor Laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In addition to the Missouri minimum wage, the state has several <\/span><b>supplementary wage laws<\/b><span style=\"font-weight: 400;\"> that employers need to understand and apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s explore these <\/span><b>additional Missouri wage laws<\/b><span style=\"font-weight: 400;\"> in a bit more detail so you can make sure your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-handbook\/\"><span style=\"font-weight: 400;\">employee handbook<\/span><\/a><span style=\"font-weight: 400;\"> meets all requirements.<\/span><\/p>\n<h3>Paid Sick Leave<\/h3>\n<p>The <strong>new PST law in Missouri is effective May 1, 2025,<\/strong> all employers must provide <strong>1 hour of paid sick leave for every 30 hours worked<\/strong>. However, this does not apply to retail or service businesses earning less than $500,000 per year. In addition, the new PST provision will not apply to unionized employees until their collective bargaining agreement expires, at which point the PST requirements will automatically apply to them.<\/p>\n<h3><b>Family and Medical Leave<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While Missouri does not have a <strong>state-specific family and medical leave law<\/strong>, employees are covered under the federal <\/span><a href=\"https:\/\/factorialhr.com\/blog\/family-and-medical-leave-act-fmla-missouri\/?variant=original\"><span style=\"font-weight: 400;\">Family and Medical Leave Act (FMLA)<\/span><\/a><span style=\"font-weight: 400;\">. Under this federal Act, eligible employees are entitled to up to <\/span><b>12 weeks of unpaid, job-protected leave per year<\/b><span style=\"font-weight: 400;\"> while maintaining their <\/span><b>health insurance coverage<\/b><span style=\"font-weight: 400;\">. All government agencies, elementary and secondary schools, and companies with 50 or more employees are covered by this law. FMLA covers a wide range of situations, including <\/span><b>illness, childbirth, adoption, and military family circumstances<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Pay Discrimination<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><strong>Missouri Human Rights Act (MHRA)<\/strong><span style=\"font-weight: 400;\"> prohibits <\/span><b>pay discrimination<\/b><span style=\"font-weight: 400;\"> based on race, color, religion, national origin, sex, ancestry, age, disability, and, in some cases, sexual orientation and gender identity. The <\/span><b>Missouri Commission on Human Rights<\/b><span style=\"font-weight: 400;\"> enforces these protections<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is in addition to the protections offered by <\/span><a href=\"https:\/\/factorialhr.com\/blog\/title-vii\/\"><span style=\"font-weight: 400;\">Title VII<\/span><\/a><span style=\"font-weight: 400;\"> of the <\/span><b>Civil Rights Act of 1964<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Pay Transparency<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While Missouri does not have a statewide law mandating <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/\"><span style=\"font-weight: 400;\">pay transparency<\/span><\/a><span style=\"font-weight: 400;\"> or specific <\/span><b>protections from retaliation<\/b> <b>for discussing or disclosing wages<\/b><span style=\"font-weight: 400;\">, certain cities within the state have implemented their own regulations to promote pay transparency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, employers in Kansas City with six or more employees cannot ask for or rely on <\/span><b>job applicants\u2019 salary histories<\/b><span style=\"font-weight: 400;\"> to make <\/span><b>hiring decisions<\/b><span style=\"font-weight: 400;\"> or determine <\/span><b>salary, benefits or other compensation<\/b><span style=\"font-weight: 400;\">. The city also requires employers to <\/span><b>disclose salary ranges for job postings and internal promotions<\/b><span style=\"font-weight: 400;\">, ensuring that employees and job applicants are better informed about potential earnings. This helps to <\/span><b>identify and address wage disparities that may exist due to gender, race or other discriminatory factors<\/b><span style=\"font-weight: 400;\">\u200b.<\/span><\/p>\n<h3><b>Workers\u2019 Compensation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Workers&#8217; compensation is a<\/span><b> state-mandated, &#8220;no-fault&#8221; insurance system<\/b><span style=\"font-weight: 400;\"> that pays benefits to <\/span><b>workers injured on the job<\/b><span style=\"font-weight: 400;\"> to cover <\/span><b>medical care<\/b><span style=\"font-weight: 400;\">, part of <\/span><b>lost wages<\/b><span style=\"font-weight: 400;\"> and <\/span><b>permanent disability<\/b><span style=\"font-weight: 400;\">. In return, employers receive <\/span><b>immunity from civil lawsuits<\/b><span style=\"font-weight: 400;\"> by employees over said workplace injuries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers can meet their <\/span><b>workers&#8217; comp obligation<\/b><span style=\"font-weight: 400;\"> by <\/span><b>purchasing insurance<\/b><span style=\"font-weight: 400;\"> or by becoming a <\/span><b>state-certified self-insurer<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Child Labor<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Missouri has specific laws regulating the <\/span><b>employment of minors<\/b><span style=\"font-weight: 400;\">. These laws set limits on the <\/span><b>number of hours minors can work<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>types of jobs<\/b><span style=\"font-weight: 400;\"> they can perform. For example, <\/span><b>children under 14<\/b><span style=\"font-weight: 400;\"> are generally not allowed to work unless under specific circumstances such as working in the <\/span><b>entertainment industry<\/b><span style=\"font-weight: 400;\"> with a <\/span><b>permit<\/b><span style=\"font-weight: 400;\">, <\/span><b>casual jobs<\/b><span style=\"font-weight: 400;\">, or working in the <\/span><b>agricultural industry<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Overtime<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Missouri adheres to the <\/span><b>federal overtime regulations<\/b><span style=\"font-weight: 400;\"> set by the <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\">. Specifically, <\/span><b>Missouri overtime law<\/b><span style=\"font-weight: 400;\"> requires that non-exempt employees receive overtime pay equal to <\/span><b>1.5 times their regular hourly pay<\/b><span style=\"font-weight: 400;\"> for any hours worked over 40 in a week (overtime). These hours must be <\/span><b>tracked and recorded,<\/b><span style=\"font-weight: 400;\"> and <\/span><b>stored <\/b><span style=\"font-weight: 400;\">for a period of <\/span><b>at least three years<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Missouri does not have <\/span><b>additional state-specific overtime laws<\/b><span style=\"font-weight: 400;\"> beyond those stipulated by the FLSA.\u00a0<\/span><\/p>\n<h3><b>Equal Pay<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Missouri does not have a <\/span><b>state-specific equal pay act<\/b><span style=\"font-weight: 400;\">. Instead, it relies on federal laws to address <\/span><b>pay discrimination<\/b><span style=\"font-weight: 400;\"> issues. The primary federal law governing <\/span><a href=\"https:\/\/factorialhr.com\/blog\/equal-pay-day\/\"><span style=\"font-weight: 400;\">equal pay<\/span><\/a><span style=\"font-weight: 400;\"> is the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/equal-pay-act\/\"><span style=\"font-weight: 400;\">Equal Pay Act<\/span><\/a><span style=\"font-weight: 400;\"> of 1963, which also aims to ensure that all employees receive <\/span><b>equal pay for equal work<\/b><span style=\"font-weight: 400;\"> (also known as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-parity\/\"><span style=\"font-weight: 400;\">pay parity<\/span><\/a><span style=\"font-weight: 400;\">).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, Missouri has <\/span><b>employment discrimination<\/b><span style=\"font-weight: 400;\"> laws that align with federal protections. For example, the <\/span><a href=\"https:\/\/labor.mo.gov\/mohumanrights\/discrimination\/employment#:~:text=The%20Missouri%20Human%20Rights%20Act,assignment%2C%20or%20classification%20of%20employees\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Missouri Human Rights Act (MHRA)<\/span><\/a><span style=\"font-weight: 400;\"> prohibits <\/span><b>discrimination in employment on the basis of race, color, religion, national origin, sex, ancestry, age, and disability<\/b><span style=\"font-weight: 400;\">. However, while this act addresses various forms of discrimination, it <\/span><b>does not specifically establish an equal pay requirement beyond what federal law already mandates<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b><a name=\"Enforced\"><\/a>How Are Missouri Labor Laws Enforced?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Missouri labor laws are enforced by the <\/span><b>Missouri Department of Labor and Industrial Relations (DOLIR) <\/b><span style=\"font-weight: 400;\">through <\/span><b>various divisions<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/labor.mo.gov\/dls\" target=\"_blank\" rel=\"noopener\"><b>Division of Labor Standards (DLS)<\/b><\/a><span style=\"font-weight: 400;\">. Handles the Missouri minimum wage, overtime, and child labor laws, investigating complaints and conducting audits to ensure compliance.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/labor.mo.gov\/mohumanrights#:~:text=MCHR%20enforces%20Missouri's%20anti%2Ddiscrimination,mo.gov%20for%20general%20inquiries.\" target=\"_blank\" rel=\"noopener\"><b>Missouri Commission on Human Rights (MCHR)<\/b><\/a><span style=\"font-weight: 400;\">. Enforces anti-discrimination laws under the Missouri Human Rights Act.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/labor.mo.gov\/des\" target=\"_blank\" rel=\"noopener\"><b>Division of Employment Security (DES)<\/b><\/a><span style=\"font-weight: 400;\">. Manages unemployment insurance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/labor.mo.gov\/dwc\" target=\"_blank\" rel=\"noopener\"><b>Division of Workers\u2019 Compensation<\/b><\/a><span style=\"font-weight: 400;\">. Oversees workers&#8217; compensation claims\u200b\u200b.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Employees can <\/span><b>file complaints with these divisions<\/b><span style=\"font-weight: 400;\">. These reports often lead to investigations that include <\/span><b>checking records, talking to employees, and workplace inspections<\/b><span style=\"font-weight: 400;\">.\u00a0 If violations are found, employers may have to <\/span><b>pay back wages<\/b><span style=\"font-weight: 400;\">, face <\/span><b>fines <\/b><span style=\"font-weight: 400;\">or take other <\/span><b>corrective actions<\/b><span style=\"font-weight: 400;\">. Employees can also file <\/span><b>civil lawsuits for labor law violations<\/b><span style=\"font-weight: 400;\">\u200b. These steps help ensure Missouri&#8217;s labor laws are followed, protecting workers and encouraging <\/span><b>fair wage practices<\/b><span style=\"font-weight: 400;\">\u200b.<\/span><\/p>\n<h2><b><a name=\"Practices\"><\/a>Wage Law Compliance Best Practices<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">And that\u2019s pretty much everything you need to know about the minimum wage in Missouri and the state&#8217;s additional wage laws! All that remains is to <\/span><b>ensure that your business complies with these laws<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, how can you make sure you don\u2019t inadvertently sidestep the law in Missouri?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simple. Just implement the following <\/span><b>essential tips and best practices<\/b><span style=\"font-weight: 400;\"> to protect your business. Plus, ensuring compliance in this way also helps you foster a <\/span><b>positive and compliant work environment<\/b><span style=\"font-weight: 400;\"> for your employees, so you can <\/span><b>attract and retain top talent<\/b><span style=\"font-weight: 400;\">, <\/span><b>boost employee morale<\/b><span style=\"font-weight: 400;\">, and <\/span><b>enhance overall productivity and workplace harmony<\/b><span style=\"font-weight: 400;\">!<\/span><\/p>\n<h3><b>Implement Accurate Payroll Practices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Maintain <\/span><b>accurate and up-to-date payroll records<\/b><span style=\"font-weight: 400;\"> to ensure <\/span><a href=\"https:\/\/factorialhr.com\/blog\/missouri-paycheck-calculator\/\"><span style=\"font-weight: 400;\">proper compensation calculations<\/span><\/a><span style=\"font-weight: 400;\">. Regularly <\/span><b>review payroll records<\/b><span style=\"font-weight: 400;\"> to identify any inconsistencies or errors. You should also create a <\/span><a href=\"https:\/\/factorialhr.com\/blog\/payroll-checklist\/\"><span style=\"font-weight: 400;\">payroll checklist<\/span><\/a><span style=\"font-weight: 400;\"> to make sure that you complete all necessary steps for each payroll cycle, including <\/span><b>verifying employee hours, ensuring correct pay rates and calculating <\/b><a href=\"https:\/\/factorialhr.com\/blog\/comprehensive-guide-to-employer-payroll-taxes\/\"><b>payroll tax deductions<\/b><\/a><b> accurately<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Post Wage Notices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Display clear and readily available <\/span><b>wage notices<\/b><span style=\"font-weight: 400;\"> in your place of business. This notice should outline the <\/span><b>Missouri minimum wage, overtime pay requirements and other relevant state wage laws<\/b><span style=\"font-weight: 400;\">. Make sure the notice is accessible to all employees and <\/span><b>update <\/b><span style=\"font-weight: 400;\">it as regulations change.<\/span><\/p>\n<h3><b>Classify Employees Correctly<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Properly classify employees as either <\/span><a href=\"https:\/\/factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/\"><span style=\"font-weight: 400;\">exempt or non-exempt<\/span><\/a><span style=\"font-weight: 400;\"> under the minimum wage regulations. This classification determines whether you must offer <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\">. Carefully <\/span><b>review the duties and responsibilities of each employee<\/b><span style=\"font-weight: 400;\"> to determine their <\/span><b>exempt or non-exempt status<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Properly Compensate Tipped Employees<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Missouri law states that <\/span><b>tipped employees<\/b><span style=\"font-weight: 400;\"> must receive at least <\/span><b>50% of the state minimum wage<\/b><span style=\"font-weight: 400;\"> ($6.15 per hour) plus tips to ensure their total earnings meet or exceed the full minimum wage of $12.30 per hour. <\/span><b>Regularly monitor employee tips<\/b><span style=\"font-weight: 400;\"> to make sure you <\/span><b>cover any shortfalls<\/b><span style=\"font-weight: 400;\">. This practice not only <\/span><b>complies with state regulations<\/b><span style=\"font-weight: 400;\"> but also promotes <\/span><b>fair treatment and employee satisfaction<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Track Overtime Hours<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Accurately <\/span><b>track <\/b><a href=\"https:\/\/factorialhr.com\/blog\/mandatory-overtime\/\"><b>overtime<\/b><\/a><b> hours<\/b><span style=\"font-weight: 400;\"> worked by non-exempt employees. Implement a system for employees to report overtime hours, such as using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-card-calculator\/\"><b>timesheets<\/b><\/a><b> or electronic timekeeping systems<\/b><span style=\"font-weight: 400;\">. Ensure that overtime pay is calculated and paid correctly at the appropriate rate (<\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-and-a-half\/\"><span style=\"font-weight: 400;\">time and a half<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/p>\n<h3><b>Maintain Accurate Records<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It&#8217;s important to <\/span><b>maintain accurate and up-to-date records of all employee work hours and wages<\/b><span style=\"font-weight: 400;\">. Keeping precise records helps ensure employees are <\/span><b>paid correctly and on time<\/b><span style=\"font-weight: 400;\">. Regular <\/span><b>internal and external audits<\/b><span style=\"font-weight: 400;\"> can you <\/span><b>identify and fix mistakes<\/b><span style=\"font-weight: 400;\">, so that everything runs smoothly and compliantly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">employee record management software<\/span><\/a><span style=\"font-weight: 400;\"> can make this easier. These systems <\/span><b>automate time tracking, payroll processing and compliance checks<\/b><span style=\"font-weight: 400;\">, which cuts down on errors and saves time. By using this technology, you can maintain <\/span><b>accurate and reliable records<\/b><span style=\"font-weight: 400;\"> and focus on other important parts of your business while staying compliant with Missouri law.<\/span><\/p>\n<h3><b>Use the Right Payroll Software<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Choosing <\/span><b>the right <\/b><a href=\"https:\/\/factorialhr.com\/blog\/best-payroll-software\/\"><b>payroll software<\/b><\/a><span style=\"font-weight: 400;\"> is essential. In fact, you could even argue that it is the <\/span><b>most important tool <\/b><span style=\"font-weight: 400;\">for <\/span><a href=\"https:\/\/factorialhr.com\/blog\/payroll\/\"><span style=\"font-weight: 400;\">managing employee wages and compliance<\/span><\/a><span style=\"font-weight: 400;\">. The right software helps you stay compliant by <\/span><b>automatically adjusting for changes in minimum wage rates<\/b><span style=\"font-weight: 400;\"> and <\/span><b>managing tax withholdings<\/b><span style=\"font-weight: 400;\">. It also helps you <\/span><b>track employee work hours, calculate overtime and <\/b><a href=\"https:\/\/factorialhr.com\/blog\/holiday-pay\/\"><b>holiday pay<\/b><\/a><b>, and produce accurate pay stubs<\/b><span style=\"font-weight: 400;\"> at the end of each <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-period\/\"><span style=\"font-weight: 400;\">pay period<\/span><\/a><span style=\"font-weight: 400;\">. This <\/span><b>reduces the risk of errors<\/b><span style=\"font-weight: 400;\">, <\/span><b>streamlines administrative tasks<\/b><span style=\"font-weight: 400;\">, and ensures that employees are <\/span><b>paid correctly and on time<\/b><span style=\"font-weight: 400;\">, helping your business comply with all Missouri wage laws and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-time-tracking\/\"><span style=\"font-weight: 400;\">time-tracking legal requirements<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/payroll\"><img decoding=\"async\" class=\"aligncenter wp-image-125685 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png\" alt=\"payroll software\" width=\"915\" height=\"314\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-768x263.png 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner.png 900w\" sizes=\"(max-width: 915px) 100vw, 915px\" \/><\/a><\/p>\n<h2><b><a name=\"Factorial\"><\/a>How Factorial Can Help You Comply with Missouri Wage Laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ensuring <\/span><b>compliance with the Missouri minimum wage and the state\u2019s additional wage laws<\/b><span style=\"font-weight: 400;\"> is crucial for employers to avoid potential penalties and legal disputes. Factorial can help you navigate the complexities of Missouri\u2019s wage laws and <\/span><b>streamline your payroll processes to maintain compliance<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated payroll calculations<\/b><span style=\"font-weight: 400;\">. Firstly, Factorial\u2019s automated payroll system eliminates manual calculations, reducing the risk of errors and ensuring accurate compensation for all employees. It automatically factors in Missouri minimum wage requirements and other relevant regulations to ensure compliance with Missouri wage laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time overtime tracking<\/b><span style=\"font-weight: 400;\">. Secondly, Factorial\u2019s time tracking feature and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/electronic-time-clock\/\"><span style=\"font-weight: 400;\">electronic time clock<\/span><\/a><span style=\"font-weight: 400;\"> enable real-time monitoring of overtime hours. This allows you to maintain and generate <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">accurate records and reports<\/span><\/a><span style=\"font-weight: 400;\"> to identify and address any overtime issues promptly, ensuring compliance with Missouri\u2019s overtime pay regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>On-demand pay<\/b><span style=\"font-weight: 400;\">. In addition, Factorial\u2019s on-demand pay feature allows employees to access their earned wages between pay periods, providing them with financial flexibility and enhancing employee satisfaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secure payroll processing<\/b><span style=\"font-weight: 400;\">. Moreover, Factorial employs robust payroll security measures to safeguard sensitive employee data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Comprehensive payroll reporting<\/b><span style=\"font-weight: 400;\">. Finally, Factorial generates detailed payroll reports, providing valuable insights into employee compensation, overtime trends, and overall payroll expenses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By leveraging <\/span><a href=\"https:\/\/factorialhr.com\/payroll\"><b>Factorial\u2019s comprehensive payroll solution<\/b><\/a><span style=\"font-weight: 400;\">, employers can <\/span><b>effectively manage payroll<\/b><span style=\"font-weight: 400;\">, comply with federal and state wage laws, and ensure that their employees are compensated in line with Missouri minimum wage rates, fostering a <\/span><b>positive and compliant work environment for all<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like many other parts of the country, Missouri has its own state-specific minimum wage law. This law sets the standard for the lowest amount that employers can legally pay their workers, ensuring that employees receive fair compensation for their labor. In today\u2019s guide for employers, we will explore the current Missouri minimum wage and share<a href=\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":138425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-137787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is the Missouri Minimum Wage? | Factorial<\/title>\n<meta name=\"description\" content=\"The Missouri minimum wage: Comprehensive guide to Missouri labor laws for employers to ensure legal compliance in the state\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is the Missouri Minimum Wage?\" \/>\n<meta property=\"og:description\" content=\"The Missouri minimum wage: Comprehensive guide to Missouri labor laws for employers to ensure legal compliance in the state\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.linkedin.com\/company\/factorialhr\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-12T15:42:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-09T12:23:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/07\/25170426\/missouri-minimum-wage.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1111\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Cat Symonds\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:site\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Symonds\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\"},\"author\":{\"name\":\"Cat Symonds\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#\/schema\/person\/4ebd3e0d92175b5ddd09603f442b8632\"},\"headline\":\"What Is the Missouri Minimum Wage?\",\"datePublished\":\"2024-07-12T15:42:25+00:00\",\"dateModified\":\"2024-12-09T12:23:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\"},\"wordCount\":2277,\"publisher\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#organization\"},\"articleSection\":[\"Legal &amp; Finance\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\",\"url\":\"https:\/\/preproduction.factorialhr.com\/blog\/missouri-minimum-wage\/\",\"name\":\"What Is the Missouri Minimum Wage? 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