Check the latest minimum wages for Missouri
Business owners, organizations and corporations must stay updated and compliant with minimum wages in Missouri to avoid any legal issues. Staying aware and updated helps to plan better for the future of business. Minimum wages in Missouri are closely linked to the cost of living and inflation rate in Missouri so everyone can afford a standard of living. These minimum wages increase annually based on the inflation rate in the economy and measured by the Consumer Price Index.
The minimum wage for all employees paid on an hourly basis is $12.30 per hour (applicable from January 1, 2024) irrespective of company size. This rate is more than the federal minimum wage of $7.25. Till January 2023, it was set at $12 per hour. The minimum wage is subject to increase annually based on the inflation rate of the economy of Missouri. The minimum wage rate is determined by the Missouri Department of Labour. The minimum wage for tipped workers in Missouri is $6.15 per hour.
Employers in Missouri must pay half of the minimum wages to tipped employees along with the necessary amount to bring their wages to $12.30 per hour. Employers in Missouri cannot pay less than $12.30 unless your occupation is exempt from state or federal law. Some agricultural employees and farm employees are exempted from minimum wages.
Employees who get minimum wages in Missouri are also entitled to overtime pay if they work for more than 40 hours per week or 8 hours a day. The amount for minimum wages is a minimum of 1.5 times of an employee’s regular payout. There are certain exemptions for Missouri minimum wages and you are paid minimum wages if you fall in the category:
1. Minimum wage for employees under 20 years of age- Those employees who are under the age of 20 are entitled to a training wage of $4.25 per hour for the first 90 employment days.
2. Minimum wage for students in Missouri- Those students who have completed their high school and are serving as full-time employees or part-time college students in Missouri are paid 85% of the minimum wage (which is as little as $10.46 per hour) for up to 20 hours of work per week.
3. Tipped minimum wage in Missouri- Those employees who earn tips every month are paid less than the minimum wage of Missouri (but a minimum amount of $12.30 per hour along with the hourly tip).
In Missouri, the minimum wage rate is revised as per the inflation rate of the state. Big businesses and corporations can tackle the rise in minimum wages but it becomes difficult for small business owners to tackle the rising minimum wage of employees.
To tackle the rising wages here are some ways they can consider:
1. Right hiring- It is necessary to ensure that small businesses hire make the right hiring decisions. Replacing an employee costs a lot for the employer. Before hiring make sure that the employee is a good fit for your business. After completing the onboarding process it is necessary to maintain healthy relationships. Moreover, it is necessary to provide a clear path of growth and success to the employees so that they are likely to stay long with your business.
2. Increase the price of product/service- One of the other ways to tackle the rising minimum wage is to increase the price of the product/service in which the business deals. But it’s necessary to stay with the market trends and the rise should be optimal.
3. Recheck your expenses- Before making hiring decisions it’s necessary to recheck the financial statements of the business. Sometimes hiring temporary or contractual employees proves to be less costly as compared to hiring full-time employees.
Using the above methods small businesses can tackle the increase in minimum wages.
The minimum wage in Missouri in 2024 is $10.25 per hour.
Full-time high school students and part-time college students are paid a minimum wage of $10.46 per hour in Missouri.
The minimum wage for tipped employees in Missouri is $6.15 per hour.