What Is Missouri’s New Minimum Wage Law?
by Paul Devlin
Missouri’s minimum wage is $13.75 per hour as of January 1, 2025, increasing to $15 per hour on January 1, 2026.*
Here’s what you need to know about Missouri’s new minimum wage laws and how they may impact your business.
Key Updates:
- Minimum Wage Increase:
- $13.75 per hour starting January 1, 2025
- $15.00 per hour starting January 1, 2026
These increases were approved through a ballot proposition in November 2024. However, a lawsuit challenging its constitutionality is currently underway. Stay informed as updates could impact this regulation.
- Tipped Employees:
- The minimum cash wage for tipped employees will be half the state minimum wage—$6.88 per hour (2025) and $7.50 per hour (2026). Employers must ensure the combined wage (cash plus tips) meets or exceeds the state minimum wage. If not, employers are required to pay the difference.
- Overtime Pay:
- For nonexempt employees, overtime is calculated as 1.5x the employee’s regular hourly rate for work exceeding 40 hours per week. This includes tipped employees with adjustments for tip credits.
Covered Employers & Exemptions
Missouri’s minimum wage law applies to most businesses, but there are exceptions:
- Exempt Employers:
- Retail/service businesses with gross annual sales under $500,000
- Exempt Employees include:
- Executive, administrative, or professional roles
- Agricultural workers
- Volunteers for nonprofits
- Babysitters, golf caddies, and newspaper delivery personnel
- External sales representatives on commission
- Employees at camps or educational conference centers
- Individuals employed on a casual basis in private residences (up to six hours per occasion)
Note: Exempt businesses and employees must still comply with federal Fair Labor Standards Act (FLSA) requirements.
Additional Considerations:
- Fair Market Value Deductions:
Employers may deduct the value of meals, lodging, and other goods provided to employees as long as:
- These are for the employee’s personal benefit.
- The deductions don’t reduce earnings below the required minimum wage.
- Travel Time:
Commuting time is generally not compensable. However, travel as part of the job is compensable and included when calculating minimum wage and overtime eligibility.
- Workweek Standards:
A workweek is a fixed seven-day period. Employers must consistently calculate wages on this basis to ensure employees receive at least the minimum wage for all hours worked.
- Subminimum Wages:
With special permission, subminimum wages may be paid to individuals with disabilities or apprentices/learners during training periods. However, certain conditions apply to ensure fairness.
Next Steps:
- Review your payroll systems to ensure compliance with these changes.
- For tipped employees, ensure your processes accurately calculate wages to guarantee compliance with tip credit rules.
- Stay informed about the ongoing lawsuit related to the minimum wage increase. We’ll provide updates as new developments arise.
If you have questions about how these changes may impact your business, consult your legal or HR advisors—or contact the Missouri Department of Labor for further guidance.
This blog does not constitute formal HR or legal advice and does not address state or local law. Our HR Resource Center by Mineral offers further advice on this and many other topics. For a small additional fee you can also speak to a live HR Specialist. Contact your friendly APlus Payroll CSS for further information (including login details) or login here. Wanting to know how we can help your Payroll process? Please contact us here. Guidance is friendly and free!
For a complete independent Q&A on the above law please click here