40-Cent Hike in Missouri Minimum Wage Effective January 1, 2009

In November 2006, Missouri voters approved an increase in Missouri minimum wage from $5.15 an hour to $6.15, with automatic annual increases thereafter to match increases in the Consumer Price Index.

Federal minimum wage law permits states to impose higher rates, which is now the case in Missouri, as the federal minimum, at $6.55, is significantly lower than the Missouri. For all employers subject to the Missouri law, the higher Missouri rate prevails.

Pursuant to the 2006 law, Missouri minimum wage increased to $6.65 an hour in 2007.

Effective January 1, 2009, it became $7.05 per hour. For tipped employees, the minimum rate is now $3.52 per hour.

Factors Reducing the Impact of the Increase in Missouri Minimum Wage

Missouri businesses with annual gross income below $500,000 are exempt.

Many businesses are not affected because they are already paying a higher rate in order to attract and retain good workers.

And, as one commentator points out, the federal minimum wage is rising later in 2009 as well, and then, at least for a while, Missouri will not be out of step with the rest of the nation:

When the federal minimum rises in July to $7.25 an hour, it will trump the Missouri minimum, taking some fuel from the state opponents’ fire. But, because the Missouri voters tied state increases to CPI changes, the controversy is likely to continue with each annual change…unless opponents succeed in overturning the law.

Update Your Posters

There is a new poster reflecting the new rate. It is available for free download at http://www.dolir.mo.gov/posters2.htm. Fancier versions (e.g., colored, laminated, combined with other required state and federal posters, etc.) are available from many commercial sources.

For More Information About Missouri Minimum Wage, See FAQs About Missouri′s Minimum Wage Law from Missouri Department of Labor Standards

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