Missouri's Minimum Wage Will Rise to $7.50 in 2014

Author: Michael Cardman, XpertHR Legal Editor

As part of an annual inflation adjustment required by state statute, Missouri will increase its minimum wage rate by 15 cents to $7.50 per hour, effective January 1, 2014, the Missouri Department of Labor and Industrial Relations has announced.

Nine other states also annually adjust their minimum wages based on the rate of inflation. Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont and Washington already have announced their changes. Nevada, which is the only state with annual inflation adjustments that do not take effect January 1 of each year, will announce its change, if any, by April 1.

Once the new minimum wage kicks in, Missouri's minimum wage will be 25 cents higher than the federal minimum wage of $7.25 per hour. The higher state minimum wage will apply except in rare cases in which an employee is exempt from Missouri's minimum wage requirements but not those of the federal government.

Missouri employers that have employees receive gratuities as a form of compensation may not pay those employees less than 50 percent of the minimum wage rate. The total compensation for the employee (wage plus gratuity) must at least equal the minimum wage rate. Any deficiency must be made up by the employer. Once the new minimum wage takes effect on January 1, 2014, the new minimum wage for tipped employees will be $3.75 per hour.