For more information, contact Jeff Flora.
New Minimum Wage Law Effective January 1, 2007
Hourly wage to increase from $5.15 to $6.50 per
hour
Jefferson City,
MO –
Missouri’s new minimum wage law goes into effect
January 1, 2007, increasing the minimum wage from $5.15 to $6.50 per hour.
The new law also requires the state minimum wage to adjust annually beginning
January 1, 2008, based on changes in the Consumer Price Index.
“The Department’s Division of
Labor Standards is working diligently to supply employers and employees with
information regarding the new law,” said Rod Chapel, director of the Missouri
Department of Labor and Industrial Relations.” “The Division is an excellent
resource and is available to assist with any questions.”
The Division launched a new web
site at
www.mominimumwage.com
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.
At this time, most employers are
covered under the federal Fair Labor Standards Act (FLSA) and Missouri’s
current minimum wage law does not apply in nearly all cases. However,
effective January 1st, changes 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 the FLSA.
The new minimum wage law applies
to Missouri retail or service businesses whose annual gross sales are $500,000
or more.
Employers subject to the new
minimum wage law will be responsible for keeping a record of the following
information for a period of at least three years: name, address and
occupation of each employee; the rate of pay; the amount paid each pay period
to each employee; the hours worked each day and each workweek by the employee;
and any goods or services provided by the employer to the employee as provided
under the law. 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.mominimumwage.com.
For employers of “tipped”
employees, the minimum base wage is $2.13 according to federal law. If the
combination of $2.13 per hour, plus the amount of tips does not equal at least
$6.50 per hour, employers must make up the difference.
The change in the law also gives
the Missouri Division of Labor Standards the responsibility to educate the
public and investigate complaints to assure compliance with the new minimum
wage law. 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.mominimumwage.com
or call the Missouri Division of Labor Standards at (573) 751-3403.
The new wage
law covers any commission sales person whose hours and place of employment are
established and controlled by the employer.
The only exception
for commission sales persons in Missouri’s new Minimum Wage Law is in
290.500.3(k). This exception is limited to employees whose hours and places
of employment are not substantially controlled by the employer. Therefore,
while some commission sales persons will be exempted under Missouri law, not
all will be. Any commission sales person, whose hours and places of
employment are not substantially controlled by their employer, would not be
subject to the provisions of Missouri law. In other words, if an individual
in this capacity is free to come and go as they please, is not required to be
at the place of business at any certain time or for any established period of
time, they would not be covered and the $6.50 per hour rate does not apply to
them.
Therefore, if a business is subject to the provisions of Missouri’s law,
employees should be paid one and one-half times their regular rate for all
hours worked over forty in a workweek. The Division will look at each seven
day workweek separately to determine the number of hours, if any, that were
worked over forty.
