Wage and Hour Blog
Missouri Minimum Wage Update

Missouri Minimum Wage Update

The Current Minimum Wage

On January 2, 2022, the minimum wage in Missouri increased from $10.30 per hour to $11.15. This is because in 2018, Missouri citizens voted to pass Proposition B, the minimum wage initiative, which increases the minimum wage in increments each year until it reaches $12.00 per hour in 2023. After passing Proposition B in 2018, minimum wage in Missouri increased to $8.60 from $7.85 on January 1, 2019; it increased to $9.45 on January 1, 2020; to $10.30 on January 1, 2021; and this year, on January 1, it increased to $11.15. On January 1, 2023, it will increase to $12.00, which will complete the increases mandated in Proposition B.

Tipped employees must be paid 50 percent of the minimum wage, plus any amount needed thereafter to bring their total earnings per hour to $11.15. Every employer obligated to pay their employees minimum wage must post a summary of the law and regulations, and employers can obtain posters with summaries from the website of the Department of Labor and Industrial Relations at  labor.mo.gov/posters. https://www.govdocs.com/missouri-voters-pass-new-minimum-wage-increase/

Determining the Minimum Wage

Before Proposition B was passed, the Missouri minimum wage was raised according to indexing, which means automatically adjusting the minimum wage to keep up with the increasing cost of living. https://raisetheminimumwage.com/question-answer/what-does-it-mean-to-index-the-minimum-wage The cost-of-living increase is calculated using the Consumer Price Index (CPI), an economic indicator of how prices of goods and services have changed over a period of time. https://www.thebalance.com/consumer-price-index-cpi-index-definition-and-calculation-3305735

The minimum wage will not change on January 1, 2024, but that is when changes in the minimum wage will revert to being calculated by the percentage of the increased cost of living. https://www.employmentlawhandbook.com/employment-and-labor-laws/states/missouri/wage-and-hour/minimum-wage/

Please do not hesitate to contact Dolley Law LLC with regard to any issues or questions relating to the minimum wage.