MISSOURI MINIMUM WAGE – changing effective January 1, 2020

The minimum wage rate in Missouri will increase 85 cents each year through the year 2023.  The increases apply to all private, non-exempt businesses.  As a result, the new minimum wage rate will be $9.45 (up from $8.60) for all hours worked on or after January 1, 2020 and will remain in effect for the year 2020.  Employers are currently required to pay tipped employees at least 50 percent of the minimum wage; the rate of $4.30 per hour for 2019, will increase to $4.73 for the year 2020.

The law does not apply to exempt employees and employers defined in the Missouri Revised Statutes under sections 290.500(3) and 290.507 which can be found at http://revisor.mo.gov/main/ViewChapter.aspx?chapter=290.  Common examples of exempt employees and employers include the following:

  • Any individual employed in a bona fide executive, administrative, or professional capacity (see our previous email on Federal minimum wage)
  • Any individual who is employed in any government position defined in 29 U.S.C. §§ 203(e)(2)(C)(i)-(ii)
  • Any individual employed by a retail or service business whose annual gross volume sales made or business done is less than five hundred thousand dollars ($500,000)
  • any employee or employer engaged in agriculture, as defined as “farming and all its branches including, but not limited to, the cultivation and tillage of the soil, dairying, the production, cultivation, growing and harvesting of any agricultural commodities, the raising of livestock, fish and other marine life, bees, fur-bearing animals or poultry and any practices performed by a farmer or on a farm as an incident to or in conjunction with farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market”

Please note that even if employees or employers are exempt for Missouri minimum wage, the Federal minimum wage laws may still apply.  For additional information regarding Missouri labor standards, follow the link to Missouri Department of Labor at https://labor.mo.gov/DLS/MinimumWage.  Information regarding Federal minimum wage requirements can be found on U.S. Department of Labor at https://www.dol.gov/general/topic/wages/minimumwage.

We would be happy to assist you or respond to any questions that you may have.  Please feel free to reach out to your Westbrook contact or ask for our payroll manager.

Westbrook CPA