Missouri recently announced that on January 1, 2017, workers will receive a minimum wage of $7.70. The Missouri Division of Labor Standards annually reviews the state’s minimum wage and adjusts it up or down based upon cost of living as measured the pre previous year’s Consumer Price Index. In perspective, the five most recent years’ minimum wage amounts are as follows:
2013 $7.35
2014 $7.50
2015 $7.65
2016 $7.65
2017 $7.70
Missouri is just one of many states implementing minimum wage increases in 2017.
Who Is Impacted?
All businesses in the state of Missouri are required to pay the minimum wage except retail and service businesses whose annual gross wages are less than $500,000.
Compensation for tipped workers must total at least $7.70 per hour. Employers of tipped workers must pay the tipped employees at least 50% of the minimum wage (or $3.85 per hour.) The workers total hourly pay must be at least $7.70 per hour, so if the tipped wages do not bring the hourly pay to $7.70 per hour, employers must adjust the base minimum wage accordingly so that the minimum wage requirement is met.
What must employers do?
Employers will obviously want to look at the wages of all workers and be prepared to make adjustments where necessary on the effective date of January 1, 2017. Additionally, Missouri requires that a labor notice must be displayed in the workplace where all employees frequent and are able to see.
Additionally, employers must maintain a record of the name, address and job description of every employee, their rate of pay and the amount paid each period and the number of ours worked each day and each workweek. The records must be kept for a period of not less than three years and shall be open for inspection for the state’s Division of Labor Standards.
Missouri employers must also comply with all state and federal labor law compliance postings. The Missouri all-in-one labor law poster includes all required federal and state posting requirements. The Labor Law Center is your one-stop labor law compliance provider, and we stand behind our service, taking one critical piece of compliance off of your plate.
