1. What is the current minimum wage in Missouri and how does it compare to federal minimum wage?
The current minimum wage in Missouri is $9.45 per hour. This is higher than the federal minimum wage of $7.25 per hour, meaning that employers in Missouri must pay their employees at least $9.45 per hour.2. How often does the minimum wage in Missouri change?
The minimum wage in Missouri is typically adjusted every year based on changes in the Consumer Price Index (CPI) for urban consumers in the Midwest region. However, there have been some years where no adjustment was made due to low or negative inflation rates.
3. Are there any exceptions to the minimum wage law in Missouri?
Yes, there are several exceptions to the minimum wage law in Missouri:
– Tipped employees can be paid a reduced minimum wage of $4.725 per hour, as long as their tips bring their total earnings up to at least $9.45 per hour.
– New employees under the age of 20 can be paid a training rate of $8.60 per hour for their first 90 days of employment.
– Employees working for businesses with annual gross sales under $500,000 are exempt from the state minimum wage and instead must be paid the federal minimum wage.
– Some categories of workers, such as independent contractors, certain agricultural employees, and certain domestic employees, are not covered by the state’s minimum wage law.
4. Is there legislation being proposed to increase the minimum wage in Missouri?
Yes, there have been ongoing efforts to increase the minimum wage in Missouri through ballot measures and legislative proposals. In November 2018, voters approved a ballot measure raising the state’s minimum wage from $7.85 to its current rate of $9.45 per hour with gradual increases each year until it reaches $12 by 2023. More recently, several bills have been introduced in the state legislature to increase the minimum wage even further and potentially eliminate tipped wages altogether.
5.Is the minimum wage in Missouri enough to live on?
The minimum wage in Missouri is not considered a living wage, meaning it is not enough for individuals and families to cover basic expenses such as housing, food, healthcare, and transportation. The Missouri Department of Social Services sets the self-sufficiency standard for a single adult at $24.96 per hour, more than double the current minimum wage. Many advocates argue that raising the minimum wage is necessary to ensure fair and livable wages for workers in Missouri.
2. Has there been any recent legislation proposed to increase the minimum wage in Missouri?
Yes, there have been multiple recent proposals to increase the minimum wage in Missouri. In 2018, a measure was placed on the November ballot to incrementally raise the minimum wage from $7.85 per hour to $12 per hour by 2023. This measure was passed by voters and is currently being implemented.
Additionally, in early 2019, legislation was introduced in both the House and Senate to raise the minimum wage from its current rate of $8.60 per hour to $15 per hour over the next several years. These bills did not pass, but there is ongoing discussion and advocacy for a higher minimum wage in Missouri.
3. Are there any exemptions or exceptions to the minimum wage law in Missouri?
Yes, there are exemptions and exceptions to the minimum wage law in Missouri.
1. Tipped employees: Employers are allowed to pay a lower minimum wage of $4.72 per hour to employees who regularly receive more than $30 per month in tips.
2. Seasonal and recreational establishments: Employers who operate seasonal or recreational establishments, such as amusement parks or ski resorts, may pay a lower minimum wage of $8.60 per hour.
3. Agricultural workers: Employers who engage in agricultural employment may pay a lower minimum wage of $8.60 per hour for the first 40 hours worked in a week.
4. Certain employees with disabilities: Employers may apply for a license from the Missouri Department of Labor to pay a subminimum wage to individuals with disabilities if it is necessary for their employment.
5. Students: Full-time students employed by their school or college, or by a non-profit organization affiliated with their school, may be paid at 85% of the applicable minimum wage rate.
6. Apprentices and learners: Employers may pay certain apprentices and learners less than the minimum wage for up to 90 days as part of an approved training program.
7. Employees under the age of 20: Employers are allowed to pay employees under the age of 20 a youth minimum wage of $7.70 per hour for the first 90 consecutive calendar days of their employment.
8. Independent contractors: The minimum wage law does not apply to independent contractors, as they are considered self-employed individuals responsible for setting their own rates.
9. Certain salespeople or commission-based employees: Salespeople or employees whose compensation is based primarily on commissions are exempt from the minimum wage requirement if their average earnings are at least one and one-half times the applicable minimum wage rate.
10. Small businesses: Businesses with less than $500,000 in annual gross sales may be eligible for an exemption from the minimum wage law, but they must apply for and receive a certificate from the Missouri Division of Labor Standards.
11. Federal contractors: Employers who are subject to the Federal Fair Labor Standards Act (FLSA) may pay employees below the Missouri minimum wage if they comply with the FLSA’s requirements.
It is important for employers and employees to be familiar with these exemptions and exceptions in order to ensure compliance with Missouri’s minimum wage laws.
4. How often does the minimum wage in Missouri get reviewed and potentially adjusted?
The minimum wage in Missouri is reviewed and potentially adjusted every year on January 1st.
5. Is there a difference in minimum wage for different industries or job types within Missouri?
Yes, the minimum wage may vary for different industries and job types in Missouri. Some examples include:– Tipped employees: The minimum wage for tipped employees in Missouri is $4.73 per hour, as long as their tips bring them to at least the regular minimum wage rate of $9.45 per hour. If their tips do not add up to at least $9.45 per hour, the employer must make up the difference.
– Government employees: Certain government employees, such as firefighters and police officers, may be exempt from state minimum wage laws.
– Agricultural workers: Agricultural workers may also be exempt from state minimum wage laws.
– 14-15 year old minors: Minors who are 14 and 15 years old can be paid a lower minimum wage of $7.20 per hour.
6. Are there any exemptions to Missouri’s minimum wage requirements?
Yes, there are several exemptions to Missouri’s minimum wage requirements including:
– Small businesses with less than $500,000 in annual gross sales
– Seasonal amusement or recreation businesses
– Professional actors or performers
– Certain agricultural workers
– Certain government employees (e.g. volunteers, elected officials)
Some other exemptions may apply based on industry or job type, such as tipped employees and minors under the age of 16.
It’s important for employers and employees to familiarize themselves with these exemptions to determine if they apply in specific situations.
6. Have there been any significant changes to the minimum wage laws in Missouri over the past decade?
Yes, there have been several changes to Missouri’s minimum wage laws over the past decade.
1. Ballot Measure Increases: In 2018, voters approved Proposition B which gradually increased the state’s minimum wage from $7.85 in 2019 to $12 in 2023.
2. Annual Adjustments: Beginning in 2019, Missouri’s minimum wage is adjusted annually based on changes in the Consumer Price Index (CPI). The CPI increase for 2020 was 1.68%, bringing the minimum wage to $9.45 per hour.
3. Small Business Exemptions: In 2015, the state legislature passed a bill that exempts businesses with fewer than 50 employees from paying the state’s minimum wage. This exemption does not apply to local minimum wage ordinances.
4. Local Minimum Wage Ordinances: Some cities and counties in Missouri have passed their own local minimum wage ordinances that exceed the state’s minimum wage requirements. These include St. Louis, Kansas City, and Johnson County.
5. Training Wage: In 2017, Missouri passed a law allowing employers to pay a training wage of at least 90% of the state’s regular minimum wage for employees under the age of 20 during their first few months of employment.
6. Tipped Minimum Wage: Missouri allows for a lower minimum wage for tipped employees, currently set at $4.73 per hour as of January 1, 2020 with an annual adjustment based on CPI changes.
7. Youth Minimum Wage: Since August 2008, workers under the age of 18 may be paid up to $7 less than the state’s regular hourly minimum wage rate if they work less than a total of six months during any calendar year at nonprofit organizations or institutions operating primarily for religious purposes or if they are playing an entertainment-type or recreational services type job.
Overall, these changes reflect ongoing debates and discussions around the minimum wage in Missouri, with efforts to increase the minimum wage and provide exemptions for certain businesses, industries, and workers.
7. How does Missouri’s minimum wage compare to neighboring states?
As of January 2021, Missouri’s minimum wage is $10.30 per hour. Here is a comparison to the minimum wages in neighboring states:
– Kansas: $7.25 per hour
– Iowa: $7.25 per hour
– Nebraska: $9.00 per hour
– Illinois: $11.00 per hour
– Kentucky: $7.25 per hour
– Tennessee: $7.25 per hour
– Arkansas: $11.00 per hour
Overall, Missouri’s minimum wage is higher than Kansas, Iowa, and Kentucky, but lower than Nebraska and Arkansas. It is also lower than Illinois and tied with Tennessee. It should be noted that some cities in these states may have higher local minimum wages that apply within their boundaries, so it’s important to check with specific locations for their exact minimum wage requirements.
8. Is it legal for employers in Missouri to pay less than minimum wage, such as through tip credits or youth wages?
Missouri’s minimum wage law allows employers to pay less than the state’s minimum wage of $9.45 per hour in certain situations, such as through tip credits and youth wages.Tip Credits:
Employers of tipped employees, such as servers and bartenders, can take a tip credit towards the minimum wage they are required to pay their employees. This means that they can pay their tipped employees a lower cash wage as long as the employee’s total earnings (including tips) equal at least the minimum wage. The current tip credit rate in Missouri is $4.725 per hour, meaning employers can pay their tipped employees a minimum cash wage of $4.725 per hour.
Youth Wages:
In Missouri, employers are allowed to pay workers under the age of 20 a youth minimum wage of 85% of the standard minimum wage for up to 90 days of employment. The current youth minimum wage in Missouri is $8.03 per hour.
It’s important to note that not all states allow for tip credits or youth wages, and those that do may have different laws and regulations surrounding them. Employers should always ensure they are following applicable state and federal laws regarding minimum wage and employee wages in general. If you believe your employer is not paying you the appropriate minimum wage or has violated labor laws, you may want to consult with an employment lawyer for further guidance.
9. Are small businesses exempt from paying the state minimum wage in Missouri?
Yes, small businesses are exempt from paying the state minimum wage in Missouri. The current exemption applies to employers with annual gross sales of less than $500,000. However, starting January 2023, all businesses will be required to pay the state minimum wage regardless of their size or annual gross sales.
10. What is considered a livable or fair wage according to cost of living in Missouri?
According to the MIT Living Wage Calculation for Missouri, a fair or livable wage for an individual without dependents in 2021 is $12.85 per hour. This takes into account the cost of housing, food, transportation, and other basic expenses. For a household with two working adults and two children, the living wage increases to $27.47 per hour, or $14.94 per hour for each adult.
11. Does Missouri have a plan for gradually increasing the minimum wage towards a certain target amount?
No, currently Missouri does not have a plan in place to gradually increase the minimum wage towards a target amount. The minimum wage is determined by state law and can only be changed through legislative action. The most recent change to the minimum wage in Missouri was approved by voters in 2018, raising it from $7.85 per hour to $12 per hour by 2023. After 2023, the minimum wage will be adjusted for inflation annually based on the Consumer Price Index.
12. Are there any debates or controversies surrounding the current minimum wage laws in Missouri?
Yes, there are several debates and controversies surrounding the current minimum wage laws in Missouri.
1. Increase in Minimum Wage: In 2018, Missouri voters approved a ballot measure to gradually increase the state’s minimum wage from $7.85 to $12 by 2023. However, some businesses have argued that this increase will lead to job losses and higher prices for consumers.
2. Preemptive Legislation: In response to the voter-approved increase in minimum wage, some state lawmakers are proposing preemptive legislation that would prevent cities and counties from enacting their own minimum wage laws. This has sparked debate about local control and the impact on workers in different regions of the state.
3. The Tipped Wage: Missouri is one of several states that allows employers to pay a lower minimum wage to tipped employees, which is currently set at $3.83 per hour. This has been a controversial issue, with some arguing that it leads to low wages and dependence on tips for service industry workers.
4. Living Wage vs Minimum Wage: Some advocates argue that the current minimum wage is not enough for workers to meet basic living expenses, leading to poverty and income inequality. They are pushing for a “living wage” instead of just a minimum wage.
5. Impact on Small Businesses: Small business owners have raised concerns about the cost of increasing wages and how it will affect their bottom line. They argue that small businesses may struggle to keep up with larger companies who can afford to pay higher wages.
6. Enforcement of Minimum Wage Laws: There have also been concerns about the enforcement of minimum wage laws in Missouri, particularly for low-wage or immigrant workers who may be more vulnerable to exploitation by employers.
7. Federal vs State Minimum Wage: The federal minimum wage is currently set at $7.25 per hour, but some argue that this is not enough for workers in certain states like Missouri with a higher cost of living. This has sparked debate about whether the federal government should raise the minimum wage, or if states should have the power to set their own minimum wage.
13. Do employees who receive tips have a separate, lower minimum wage requirement in Missouri?
Yes, employees who receive tips in Missouri have a separate minimum wage requirement. The current minimum wage for tipped employees in Missouri is $4.725 (as of October 1, 2021) and they must also earn enough in tips to bring their total earnings up to the state minimum wage, which is currently set at $10.30 per hour. If an employee’s tips do not add up to the full minimum wage, their employer is responsible for making up the difference. 14. Are non-profit organizations exempt from paying their employees at least state minimum wage in Missouri?
No, non-profit organizations in Missouri are still required to pay their employees at least the state minimum wage, unless they qualify for certain exemptions such as being a seasonal amusement or recreational establishment.
15. What are the consequences for employers who violate the state’s minimum wage laws in Missouri?
Employers who violate the state’s minimum wage laws in Missouri may face penalties including fines, legal action, and back pay owed to the affected employees. Repeat offenses or intentional violations may result in more severe consequences such as larger fines, criminal charges, and potential damage to the employer’s reputation. In some cases, employers may also be required to participate in education or supervision programs to ensure compliance with minimum wage laws. Additionally, employees may file a complaint with the Missouri Department of Labor for investigation and enforcement of their rights under the state’s minimum wage laws.
16. How does overtime pay affect employees who are paid at or near the state’s minimum wage level in Missouri?
In Missouri, the current minimum wage is $8.60 per hour (as of 2021). If an employee is paid at or near this minimum wage level, overtime pay will significantly increase their earnings because they will receive one and a half times their regular hourly rate for any hours worked over 40 in a workweek.
For example, if an employee is paid at the minimum wage level of $8.60 per hour and works 45 hours in a workweek, their earnings would be calculated as follows:
Regular pay (40 hours x $8.60) = $344
Overtime pay (5 hours x $12.90) = $64.50
Total earnings for the week = $408.50
This means that even though the employee worked only 5 extra hours, their total earnings for the week increased by almost 20%. This can provide a significant financial benefit for employees who are paid at or near the state’s minimum wage level.
It is important to note that certain exemptions may apply to overtime pay in Missouri, such as for employees who fall under the federal Fair Labor Standards Act and are classified as exempt from overtime pay requirements. Additionally, some industries or occupations may have different minimum wage rates set by local laws or collective bargaining agreements.
Overall, it is crucial for both employers and employees in Missouri to understand the state’s overtime pay laws to ensure compliance and fair compensation for all workers.
17. Are there any specific industries or job types that are exempt from following state-level minimum wage laws in Missouri?
Yes, there are several industries and job types exempt from following state-level minimum wage laws in Missouri. These include:
1. Tipped workers: Employers can pay a lower minimum wage of $3.83 per hour to tipped employees such as waiters, bartenders, and other service industry workers. However, if the employee’s tips combined with the lower hourly wage do not add up to the regular minimum wage of $9.45 per hour, then the employer must make up the difference.
2. Seasonal employees: Employees who work in certain recreational activities or closely related activities for fewer than 12 weeks per year are exempt from state minimum wage laws.
3. Farm and agricultural workers: Employers engaged in agriculture as their primary business are exempt from paying the state minimum wage to their employees.
4. Government employees: Federal, state, and local government employees are not covered by Missouri’s minimum wage law.
5. Non-profit organizations: Employers that are organized under section 501(c)(3) of the Internal Revenue Code and not operated for profit may be exempt from state minimum wage laws.
6. Trainees or learners: Employees who are under 20 years old and in a training or apprenticeship program may be paid a subminimum “learner” rate for up to 90 days.
7. Disabled workers: Workers whose earning capacity is impaired by physical or mental disability may be employed at subminimum wages by certain organizations with a special certificate issued by the U.S. Department of Labor.
8. Independent contractors: Persons performing services for others under a contract may be exempt from minimum wage protections if they meet certain criteria set forth by state law.
9 . Salespersons or mechanics primarily earning commissions: Individuals who earn most of their income through commissions on sales or repairs are exempt from minimum wage protections under certain conditions.
10. Workers at small businesses: Businesses with gross annual sales less than $500,000 are not required to pay the state minimum wage to their employees.
11. Some minors: Employers may pay a lower minimum wage rate to workers under 18 years old for the first 730 hours of work.
18. If an employee works remotely for a company based outside of Missouri, do they still receive at least state-mandated minimum wage?
Yes, if an employee is working remotely for a company based outside of Missouri, they must be paid at least the state-mandated minimum wage for hours worked within the state of Missouri. Employers must comply with the minimum wage laws of the state in which their employees are working.
19. Are there any age restrictions for employees earning the minimum wage in Missouri?
Yes, there are age restrictions for employees earning the minimum wage in Missouri. According to the Missouri Department of Labor and Industrial Relations, individuals under the age of 16 can be paid 85% of the state minimum wage (currently $9.45 per hour) as long as they work no more than 20 hours per week when school is in session, or no more than 40 hours per week when school is not in session. Employers are required to pay employees aged 16 and over at least the state minimum wage (currently $11.05 per hour). However, federal law mandates that anyone under the age of 18 must be paid at least the federal minimum wage (currently $7.25 per hour).
20. In what ways does Missouri enforce compliance with their minimum wage laws?
Missouri enforces compliance with their minimum wage laws in several ways:
1. Workplace Inspections: The Missouri Division of Labor Standards conducts regular inspections of workplaces to ensure that employers are complying with minimum wage laws.
2. Complaint Investigations: Employees can file a complaint with the Division of Labor Standards if they believe their employer is not paying them the mandated minimum wage. The division will investigate the claim and take appropriate action if necessary.
3. Legal Action: If an employer is found to be in violation of minimum wage laws, the Missouri Attorney General’s Office can bring legal action against them.
4. Penalties and Fines: Employers who are found to have violated minimum wage laws may be subject to penalties and fines. These penalties can include fines of up to $500 per violation and criminal charges for repeat or intentional violations.
5. Education and Outreach: The Division of Labor Standards also conducts educational programs and outreach efforts to inform employers and employees about their rights and responsibilities under Missouri’s minimum wage laws.
6. Payroll Recordkeeping Requirements: Employers in Missouri are required to keep accurate records of hours worked and wages paid for each employee, which allows for easier enforcement of minimum wage laws.
7. Public Awareness Campaigns: The state government may also conduct public awareness campaigns to encourage compliance with minimum wage laws and inform workers about their rights.
8. Cooperation with Federal Agencies: The Missouri Division of Labor Standards works closely with federal agencies like the Department of Labor Wage and Hour Division (WHD) in enforcing compliance with federal minimum wage laws, especially in cases where an employer violates both state and federal regulations.