ST. LOUIS — Starting New Year’s Day, minimum-wage workers across Missouri will see an increase in hourly rates.
Missouri voters approved Proposition A in the November General Election to set the stage for minimum-wage increases over the next two years.
On Jan. 1, 2025, the state’s minimum wage is set to increase to $13.75 per hour for workers of “all private and non-exempt businesses,” according to the Missouri Department of Labor .
Despite the planned increase, some workers in some retail and service businesses may not directly earn $13.75 an hour.
When the state’s new minimum wage rate takes effect New Year’s Day, the state only requires employers to “pay tipped employees at least 50 percent of the minimum wage,” along with “any amount necessary to bring the employee’s total compensation to a minimum of $13.75 per hour.” The new state law would require workers under this criteria to make $6.88 per hour before tips, according to the Department of Labor.
The state adds that “employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate,” which means these employers could theoretically pay wages below the state minimum of $13.75 per hour.