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New Year, New Wage Rates

New Year, New Wage Rates

With the passage of Proposition B last November, Missouri became one of 19 states that will see an increase in the minimum wages this year.

The previous minimum wage of $7.85/hour increased effective January 1st 2019 to $8.60/hour and will continue to increase each January until it reaches $12.00/hour in 2023 giving businesses time to adjust staffing, procedures and prices as needed. This increase will place Missouri among the 10 states with the highest minimum wage rate.

Businesses in the retail or service industry whose gross annual income is less than $500,000 will not be required to pay the new state minimum wage rate, according to the Missouri Department of Labor. Employees’ wages in those businesses can be set by the business at a rate of their choosing. Compensation for tipped employees is required to be at least 50 percent of the minimum wage, and any amount necessary to bring the employee’s total compensation to equal of the state minimum wage of $8.60/hr.

Posted 1-3-2019 | Topics: Client Alerts, Featured News & Resources, News, Uncategorized,