 |
|
| By Rod Chapel, Director Missouri Department of Labor and Industrial Relations |
For release the week of: December 25, 2006
Missouri’s New Minimum Wage Law
Missouri citizens have chosen to enact a new state law to increase the minimum wage within our borders. On November 7th Proposition B passed by an overwhelming 75.9 percent with more than two million votes counted. The new statute changes the existing law in several ways. Pursuant to 290.500, the Missouri Division of Labor Standards has the responsibility to educate the public and investigate complaints to assure compliance with the new minimum wage law. The department is working as we speak to answer questions that have risen directly from the statutory language enacted and the panoply of issues that are by their nature a corollary, to the new minimum wage statute.
The easiest points to consider are that the ballot measure raised the minimum wage in Missouri from $5.15 to $6.50 per hour and goes into effect January 1, 2007. The new law also requires the state minimum wage to adjust annually beginning January 1, 2008, based on changes in the Consumer Price Index.
Before January 1, 2007, most employers are covered under the federal Fair Labor Standards Act (FLSA) and Missouri’s current minimum wage law does not apply in almost all cases. However, effective January 1st changes enacted by Proposition B will impact many Missouri employers. Proposition B excludes certain FLSA exemptions towards state law. Therefore, Missouri employers will be required to comply with state minimum wage requirements and FLSA.
Not every Missouri employer will be covered under the new minimum wage law. So, how do you know whether the law applies to your business? The new minimum wage law applies to Missouri retail or service businesses whose annual gross sales are more than $500,000.
It is important to note that Proposition B requires Missouri employers to do more than pay a minimum wage of $6.50 per hour. First, employers subject to the new minimum wage law will be responsible for keeping a record of certain information on employees for a period of at least three years. In addition, a summary of wage regulations must be posted in a conspicuous and accessible place for employees to view. Minimum wage posters will soon be available to print at no charge at www.dolir.mo.gov/ls/minimumwage/.
The Department launched a new web site at www.dolir.mo.gov/ls/minimumwage/ to assist employers and employees understand the new minimum wage law under Proposition B. The new web site provides answers to frequently asked questions, links to ballot language and additional state and federal contact information.
Wage & Hour staff members are available to provide information and assistance to any Missouri employers or employees who have questions about the new minimum wage law changes. To learn more about Missouri’s new minimum wage law or to print a minimum wage poster, please visit www.dolir.mo.gov/ls/minimumwage/, call the Missouri Division of Labor Standards at (573) 751-3403 or e-mail minimumwage@dolir.mo.gov.
###
Information and Planning · 421 East Dunklin
· P.O. Box 504 · Jefferson City, MO
65102-0504
573-751-7500 · 573-751-6552 (Fax)
Relay Missouri: 1-800-735-2966 (TDD) 1-800-735-2466 (Voice)