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Missouri minimum wage increases to $7.85 on Jan. 1, 2018

Minimum cash wage paid to tipped employees will rise on same date to $3.925

Missouri’s minimum wage is subject to change each year based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, commonly known as CPI-W.  In November, the Missouri Department of Labor and Industrial Relations announced the state minimum wage will increase 15 cents to $7.85 effective January 1, 2018.  The minimum cash wage paid to employees who receive tips will rise on that same date to $3.925 per hour, or one-half of the minimum wage.  If tips fail to raise total compensation to at least $7.85, employers are required to make up the difference.

In 2006, voters decided Missouri’s wage floor should be indexed to changes in the CPI-W to account for inflation.  Specifically, state law stipulates the wage adjustment is based on the change in the July reading of the CPI-W from one year to the next.  From July 2016 to July 2017 the CPI-W rose 1.638%.

The law contains a provision that the adjusted wage floor is rounded to the nearest 5 cents.  A 1.638% increase in the CPI-W indicates a $7.826 wage, which is then rounded up to $7.85 per hour – the nearest 5 cents.

Recent history of the state’s minimum wage is indicated in the table below.

YearWage
2012$7.25
2013$7.35
2014$7.50
2015$7.65
2016$7.65
2017$7.70
2018$7.85

Missouri employers are required to display the new 2018 Minimum Wage Notice on the date the minimum wage increases.  Labor law posters to keep your business in full compliance with all state and federal posting requirements are available for order on MRA’s website.   2018 All-In-One Poster

MRA members receive a 33% discount.

Author: MRA
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