The $12 Minimum Wage Initiative under the state of Missouri's Proposition B took effect on January 1st, 2019, establishing Missouri's statewide minimum wage. The measure was originally set to increase the minimum wage to $12 per hour by 2023.
Currently, Missouri's minimum wage is adjusted each year based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2026, the Missouri minimum wage rate is $15.00 per hour. Under specified circumstances, a variety of employers may be exempt from its coverage.
Effective January 1st, 2026, the hourly minimum wage rate in Missouri is $15.00 per hour. The minimum wage is applicable to most employees in the state of Missouri, with some exceptions that may apply, including certain retail businesses and agricultural employees.
In accordance with Proposition A, the minimum wage is set to continue being adjusted by the CPI-W effective January 1st, 2027.
| EFFECTIVE DATE | MISSOURI MINIMUM WAGE |
| January 1, 2022 | $11.15 |
| January 1, 2023 |
|
| January 1, 2024 |
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| January 1, 2025 | $13.75 |
| January 1, 2026 |
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Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.
Effective August 28, 2017, the state of Missouri does not allow municipalities to have a higher minimum wage than the state's own minimum wage rate. All localities of Missouri must follow the state's minimum wage rate.
Outside of Federal minimum wage and overtime exceptions based on FLSA classifications, the state of Missouri has a few instances where a special minimum wage can apply.
Special minimum wage in Missouri includes the following:
Missouri businesses must pay employees receiving tips no less than 50% of the state's minimum wage rate, which is $7.50 per hour for 2026. However, tips received must at least equal the state minimum wage when added to the tipped wage. Employers must compensate employees the necessary amount to bring his or her total wages to $15.00 per hour if the employee's tips do not add to that the state's minimum wage rate.
Effective January 1, 2026, the tipped minimum wage adjusts to $7.50 per hour, 50% of the 2026 minimum wage rate.
Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows applicable employees, including those self-employed, to claim a tax reduction on qualified tips received from his or her occupation. The tip tax deduction is effective from January 1, 2025 through December 31, 2028.
The occupation must be listed by the IRS as “customarily and regularly” receiving tips and must be reported on a Form W-2 or other applicable statements that report qualified tips (ex: Form 4137 for tips not reported to the employer).
An employee can deduct an annual maximum amount of $25,000. For self-employed individuals, the deduction amount cannot exceed his or her net income from the trade or business where the tips were earned. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 for employees filing taxes jointly, the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.
To be eligible for the tip tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for overtime.
Note that self-employed individuals categorized in a Specific Trade or Business (SSTB) under section 199A are NOT eligible.
All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the cash tips received and the occupation of the tip recipient.
As with many states, Missouri established special wages for construction workers performing duties on public works projects (bridges, roads, government buildings) under the Missouri Prevailing Wage Law.
According to the US Department of Labor, a "prevailing wage" is defined as an average wage paid to similarly employed workers of a particular occupation within the same area or region of employment. This means that the prevailing minimum wage rates for Missouri employees vary depending on the construction worker's job and the area, or county, he or she is working in.
All employees performing construction on public works projects must receive a prevailing wage rate, regardless of his or her job title or salary status. The only exception applies to employees performing only supervising related tasks.
Additionally, the public works project must be valued at over $75,000 and must be constructed by or on behalf of the state and local public bodies for prevailing wages to qualify. Employers cannot split up a project into smaller projects valued less than $75,000 for the purpose of avoiding paying the proper minimum prevailing wage rates.
Note that employees have the right to bargain for a higher minimum wage rate, and employers have the right to offer higher wage rates.
Missouri's prevailing wage amounts are set by the Missouri Department of Labor and Industrial Relations (DOLIR) using surveys to collect information on similar employee occupations by county and averaged to create a prevailing wage rate. These rates are issued under the Annual Wage Order.
The Annual Wage Order includes the following information regarding prevailing wages:
Effective June 26, 2025, employers will need to review Annual Wage Order No. 32 in order to accurately compensate qualified prevailing wage workers based on his or her specific job and the county where work was performed. The DOLIR website offers an Annual Wage Order Look-Up for employers to use to search for the exact prevailing wages owed to employees.
Employers may hire one entry-level or apprentice worker for every qualified prevailing wage employee, in which case, employers are allowed to pay 50% of the prevailing wage defined under his or her occupational title, including fringe benefits.
Employers are required to provide a copy of the current Annual Wage Order for each project as part of the bidding specifications on a public works project.
The Public Works Contracting Minimum Wage (PWCMW) is used instead of the prevailing wage rate in counties where fewer than 1,000 hours are reported for a specific occupational title.
In this case, the minimum prevailing wage rate is then calculated by multiplying the average wage rate in each county by 120%, calculated annually by the Missouri Economic Research and Information Center (MERIC).
The PWCMW wage rates can also be found on the current Annual Wage Order (Annual Wage Order No. 32) and are based on the specific job title for each county and are labeled as such using the Annual Wage Order Look-Up tool on the DOLIR website.
The state of Missouri recognizes the federal overtime regulations set forth by the FLSA. If an employee works more than 40 hours in an average seven-day workweek, the employee is to receive an overtime rate of 1.5x of the employee's regular hourly rate.
Employees exempt from the minimum wage in Missouri include workers based on the Federal FLSA classifications.
Additionally, the state of Missouri exempts the state's minimum wage for these employees:
Certain employees engaged in agricultural work in the state of Missouri are also exempt from the state minimum wage, with such work including:
It's important to note that employees exempt from the Missouri minimum wage are also exempt from overtime pay.
Missouri does not require employers to give specific meal or rest breaks to adult employees. However, employers that offer employees breaks must adhere to the specific guidelines set forth by the FLSA regarding meal and rest breaks.
For compliance with Missouri labor laws, employers must visibly display the Missouri minimum wage in a conspicuous location that all employees have access to in the workplace. An all-in-one Missouri Labor Law Poster will cover all the required state and federal labor law postings.
Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with Missouri's state or local laws.
If an employer refuses to pay the appropriate minimum wage rate or overtime pay rate, the DOLIR will conduct an investigation process to determine if wages are owed. Missouri does not have a wage collection law allowing it to pursue your claim for wages owed; however, the DOLIR will still make an attempt to collect back pay from the employer.
If the DOLIR has found that an employer owes wages and was not able to collect them on the employee's behalf, the employee will receive a notification giving him or her the right to pursue legal action to collect the owed wages.
Employers will be penalized the following amounts if found liable for owed wages:
For example, if an employee was paid $400, but discovered he or she was supposed to be compensated $1000, the employee can request the remaining $600 in back pay. If the employee then takes the employer to court and wins, he or she will be rewarded the remaining $600 plus liquidated damages from the employer, also equal to the remaining $600, and court costs.
Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to a Missouri payroll services company. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.
To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the Find a Provider tool.
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