Missouri Voters Approve Minimum Wage Increase
12/01/18
Author: Jody Rodney/Friday, November 30, 2018/Categories: News
Overview: Missouri voters have approved a law that will increase the minimum wage in several stages beginning January 1, 2019.
Effective Date: January 1, 2019’
Details:
The minimum wage will increase to:
- $8.60 per hour on January 1, 2019.
- $9.45 per hour on January 1, 2020.
- $10.30 per hour on January 1, 2021.
- $11.15 per hour on January 1, 2022.
- $12.00 per hour on January 1, 2023.
Beginning January 1, 2024, the minimum wage is subject to annual adjustment for inflation or deflation.
State and local government employers in the state are exempt from the above changes.
Note: Employees of employers engaged in retail or service businesses with annual gross income less than $500,000 are not entitled to the state minimum wage. However, these employees may be entitled to the federal minimum wage under the Fair Labor Standards Act, which is currently $7.25 per hour.
Penalty:
The voter-approved law also increases the penalty for violating the minimum wage. Employers that violate the minimum wage rules will be required to pay the unpaid wages plus an amount equal to twice the unpaid wages.
Tipped Employees:
Under state law, tipped employees must receive a direct cash wage of at least half the state minimum wage. Therefore, the minimum direct cash wage required for tipped employees will change each year with the state minimum wage. For example, in 2019, employers must pay tipped employees a direct cash wage of at least $4.30 per hour. If the employee’s direct cash wages and tips fail to equal or exceed the applicable minimum wage, the employer must make up the difference.
Call to Action:
Covered Missouri employers must pay all non-exempt employees the new minimum wage and post an updated minimum wage poster by January 1, 2019.
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