| Q: |
What is the minimum wage rate in Missouri? |
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| A: |
The current Missouri Minimum Wage rate is $6.65 per hour. Beginning January 1, 2009 the Missouri Minimum Wage rate will increase to $7.05 per hour. |
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| Q: |
When do I have to start paying the new Minimum Wage of $7.05 per hour and why did it increase from $6.65? |
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| A: |
If your business is subject to the provisions of the law, you need to pay the minimum wage of $7.05 per hour to all employees covered by the law starting January 1, 2009. Missouri Minimum Wage Law requires the Director of the Department of Labor and Industrial Relations to, on September 30, 2008, measure the increase or decrease in the cost of living over the level as of July of the immediate preceding year. The amount of the minimum wage increase or decrease is rounded to the nearest 5 cents. The 2009 increase is based on a 6.0 percentage change in the Consumer Price Index between July 2007 and July 2008. This is calculated using CPI for Urban Wage Earners and Clerical Workers Midwest Region, published by the U.S. Department of Labor, as follows: |
| |
| CPI for July 2008 |
206.0 |
| Less CPI for 2007 |
194.2 |
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Equals index point change |
11.8 |
| Divided by previous period CPI |
194.2 |
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Equals |
0.06 |
| Results multiplied by 100 |
0.06 x 100 |
| |
Equals percent change |
6.0 |
| $6.65 x 6.0 = 0.399 rounded to the nearest five cents = |
$.40 |
|
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| Q: |
What amount must an employer pay a tipped employee? |
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| A: |
Compensation for a tipped employee must total at least the minimum wage rate which is currently $6.65 per hour. Employers subject to the provisions of the law are required to pay tipped employees at least 50% of the minimum wage of $6.65, or $3.325 per hour. When the minimum wage increases to $7.05 on January 1, 2009 employers will be required to pay employees at least 50%, or $3.525 per hour. Employers of tipped employees must pay more than 50% of the minimum wage rate to tipped employees if it is necessary to bring the employee's total compensation up to at least the minimum wage rate per hour. In other words, the employer is required to make up the difference between the minimum wage amount and the actual base wage and tips received by the employee. |
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| Q. |
What amount must an employer pay a tipped employee for hours worked over 40 in a workweek? |
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| A: |
"Time and one-half" is the minimum wage ($6.65) plus one-half of the minimum wage ($3.325), resulting in a total overtime wage of at least $9.975 per hour. DOLIR regulation 8 CSR 30-4.020 (4) continues to allow an employer to apply a tip credit up to 50% ($3.325) of the minimum wage of $6.65 per hour regardless of the tips received by an employee. This means an employer must pay a base wage of at least $6.65 per hour for all hours worked over 40 in a workweek, regardless of the tips received by an employee. When a tipped employee works sufficient hours to be eligible for overtime pay and an employee receives tips which combine with base wage to average less than $9.975 per hour in total compensation, the employer is required to make up the difference. When the minimum wage increases to $7.05 on January 1, 2009 an employer must pay a base wage of at least $7.05 per hour for all hours worked over 40 in a workweek, and "time and one-half" will be the minimum wage ($7.05) plus one-half of the minimum wage ($3.525), resulting in a total overtime wage of at least $10.575 per hour. |
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| Q: |
Is there any exemption for the small business employer so I will not have to pay the Minimum Wage? |
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| A: |
The only exemption that applies is for a retail or service business whose annual gross sales are less than $500,000. |
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| Q: |
If I am making $6.65 now, will I get an increase January 1st? |
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| A: |
Any employer subject to the provisions of the law needs to pay covered employees a minimum of $7.05 per hour effective January 1, 2009. |
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| Q: |
Where can I get additional information regarding the law changes? |
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| A: |
If you cannot find a particular answer on this website, email us your question or call the Division of Labor Standards at 573-751-3403. |
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| Q: |
Will a new Minimum Wage poster be available? |
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| A: |
A poster is not required by the Minimum Wage Law. All employers subject to any provisions of the law, though, shall post a summary of the law and regulations. The Division of Labor Standards has created a summary to post for the convenience of Missouri employers. A link to the summary is included on this website. You may click this sentence to take you directly to the summary for you to print  . You may also print a Bilingual Minimum Wage Summary Poster . Please post the summary in a conspicuous and accessible place at the business. |
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| Q: |
When will my employer have to pay me the new Minimum Wage? |
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| A: |
All employers subject to the Missouri minimum wage law are required to pay a minimum of $7.05 per hour starting January 1, 2009. |
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| Q: |
I make $7.25 per hour now. When the Missouri Minimum Wage goes to $7.05 and my employer raises other people to $7.05, will I get an increase also? |
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| A: |
That is not required by law. |
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| Q: |
Does the Missouri Minimum Wage affect salaried employees? |
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| A: |
The Missouri Minimum Wage law could apply if a salaried employee does not fall within any of the exemptions in the law and their salary does not equal the minimum wage rate per hour for all hours worked in a work week. |
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| Q: |
I am a covered small business employer. I pay my current employees the federal minimum wage rate of $6.55 per hour now. What will happen if I decide not to pay the Missouri Minimum Wage? |
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| A: |
You will be in violation of the law. If the Missouri Division of Labor Standards receives a complaint or becomes aware of a situation where an employer, who is covered by the law, is not paying the minimum wage, the office will conduct an investigation to assure compliance. |
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| Q: |
What can I do if I believe I am not being paid the minimum wage and/or overtime? |
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| A: |
If you believe you are not being paid correctly, you can contact the Missouri Division of Labor Standards at 573-751-3403 or minimumwage@dolir.mo.gov to file a complaint. |
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| Q: |
If it is determined that I was not paid minimum wage and/or overtime, what steps will be taken to collect wages due me? |
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| A: |
The Division of Labor Standards will conduct an investigation to assure compliance with the Minimum Wage Law. If it is determined that wages are due, we will attempt to collect on your behalf. However, Missouri does not have a wage collection law. Therefore, no state agency, including the Division of Labor Standards, has authority to pursue wages due through the courts. In instances where it is determined that wages are due, and we are unable to collect on your behalf, you will be notified of your right to bring a legal action to collect the claim yourself. An employer who pays an employee wages less than what they are due under the Minimum Wage Law shall be liable for the full amount of the wage rate and an additional equal amount as liquidated damages, less any amount actually paid, and for costs and such reasonable attorney fees as may be allowed by the court or jury.
The time limit for all actions for the collection of any deficiency in wages is two years from the accrual of the cause of action. See 290.527, RSMo at http://www.moga.mo.gov/statutes/c200-299/2900000527.htm. |
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| Q: |
As an employer subject to the provisions of Missouri′s Minimum Wage Law, what records am I required to keep and how long should they be kept? |
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| A: |
You should keep a record of the name, address and job description of each employee, the rate of pay, the amount paid each pay period and the number of hours they worked each day and each work week. These records should be kept on or about the premises for a period of not less than three years. |
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| Q: |
To whom do I have to provide the records? |
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| A: |
The records shall be open for inspection by the Department Director or his authorized representative. When the records are kept outside the state, they shall be made available upon demand. |
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| Q: |
Will my records be made available to the public? |
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| A: |
All records and information obtained from an employer by the Department of Labor and Industrial Relations, Division of Labor Standards pursuant to a minimum wage investigation are confidential and shall be disclosed only on order of a court of competent jurisdiction. |
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| Q: |
Can deductions be made from an employee′s paycheck? |
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| A: |
Yes, but any deduction can not take a covered employee′s wages below the state hourly minimum wage rate. |
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