By Vicki Wood
A new minimum wage of $13.75 per hour is good news for a lot of Missourians. Thanks to the passage of Proposition A in November, private and non-exempt businesses must compensate employees a bit more. This is a $1.45 increase from 2024.
What does that mean for employees who receive tips such as servers, bartenders, and others who have the tip as part of their regular pay?
Photo byPetr SevcoviconUnsplash
They must receive 50% of the new hourly wage, which is $6.875 per hour, plus whatever tips it takes to bring their wage to the full $13.75 amount.
If you work for a small business, however, those that have retail sales under $500,000, you can be paid any amount the employer chooses. They do not have to abide by the new wage law.
The federal minimum wage is just $7.25 per hour. Overtime hour laws above 40 hours of labor per week have not changed. In a state that is subject to state and federal minimums, the higher one prevails in employee pay, according to the U.S. Department of Labor. Iowa and Kansas have only the federal minimum wage of $7.25 per hour. How does one live on $7.25 per hour with something as necessary as eggs now priced at almost that rate?