In Missouri, the current minimum wage is $10.30 per hour, which is higher than the federal minimum wage of $7.25 per hour as mandated by the Fair Labor Standards Act. When there is a discrepancy between federal and state laws, businesses are required to pay employees the higher rate.

Even if an employee’s hourly pay rate is $10.30, certain paycheck deductions can lead to violations of the Missouri Minimum Wage Law. Employers can deduct wages for reasons such as cash register shortages, equipment damage, repayment of cash advances or loans, purchases made at the place of business, and similar reasons. However, these deductions must not reduce the employee’s hourly rate below the required minimum wage.

Additionally, some employees may need to be paid more than the state minimum wage. Under the Missouri Prevailing Wage Law, employees working on public works construction projects must be paid a set rate based on the county and type of work performed.

House Bill 1729, effective in 2018, introduced changes to the Missouri prevailing wage system. The Department of Labor and Industrial Relations, Division of Labor Standards, issues a final Annual Wage Order by July 1 each year.

For instance, Annual Wage Order 26 became final and effective on June 26, 2019, following Annual Wage Order 25, which was final and effective on April 25, 2018. The Annual Wage Order lists prevailing wage rates by county and occupational category.

On August 28, 2017, Missouri passed HB 1194, which prevents municipalities from setting minimum wage rates higher than the state’s minimum rate. This preemption law forced St. Louis and Kansas City to abandon their plans to increase the minimum wage.

In St. Louis, the journey began in 2015 when the city passed an ordinance to raise the minimum wage to $11 per hour by 2018. Despite legal challenges, the state’s highest court eventually upheld the ordinance, and employers started paying a minimum wage of $10 per hour. However, this was short-lived, as HB 1194 required St. Louis to revert to the state minimum wage of $7.70 per hour at that time.

Kansas City had a similar experience. The city planned to raise the minimum wage to $10 per hour, with a goal of reaching $15 per hour in a few years. Voters approved this measure on August 8, 2017, but HB 1194, passed shortly after, mandated adherence to the statewide minimum rate.

Required Posters:

• Minimum Wage
• Child Labor
• Fair Employment
• Unemployment Insurance
• Workers' Compensation

Missouri law, in line with federal law, requires an overtime rate of at least one-and-a-half times the employee’s regular rate of pay for hours worked over 40 in a workweek. There is no requirement to pay overtime on a daily basis under state wage-and-hour laws.

Exceptions for Amusement or Recreationg Businesses

Amusement or recreation businesses that meet certain criteria are exempt from paying overtime until employees work over 52 hours in a workweek.

Waiving Overtime Rights

Employees cannot waive their rights to overtime pay, and employers cannot request or accept such waivers. Both federal and state laws strictly prohibit this practice.

Exempt Employees

Certain employees are exempt from overtime under both federal and Missouri law. These include:

• Bona fide executive, administrative, or professional employees
• Outside sales employees

Prevailing Wage Law

Businesses must also consider Missouri’s Prevailing Wage Law. HB 1729, enacted in 2018, requires employers involved in public works construction projects to pay overtime if an employee’s hours exceed 10 hours in a day and/or 40 hours in a workweek.

In Missouri, employers are required to maintain specific records for at least three years. The Department of Labor and Industrial Relations, Division of Labor Standards, has the authority to inspect these records.

Employers must keep the following information on file for each employee:

• Name, address, and job description
• Rate of pay
• Amount paid each pay period
• Number of hours worked each day and each workweek