Missouri Minimum Wage Goes to $6.65

November 29th, 2007 Posted by Amelia

More than a dozen U.S. states will increase the minimum wage with the new year, including Missouri. The Missouri minimum wage will increase 15 cents from $6.50 to $6.65 per hour on January 1, 2008.

Section 290.502.2 of the state statutes requires the Director of the Department of Labor and Industrial Relations to measure the increase or decrease of the cost of living as of the previous July, and adjust the state minimum wage accordingly. The new rate is based on the CPI, the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the U.S. Department of Labor.

Missouri is one of the very few states that allows for the minimum wage to be decreased, if the cost of living goes down.

The Missouri law does exempt retail or services businesses with gross revenues of less than $500,000 per year. However, if these businesses engage in interstate commerce, many employees will be covered under the federal minimum wage law.

The state law also requires that employers pay overtime after 40 hours per week. However, the Missouri Department of Labor and Industrial Relations doesn’t have an enforcement branch. Instead, employees who are being paid too little must bring suit against the employer.

Missouri’s minimum wage is higher than the  federal minimum wage, which is currently $5.85. Many states have minimum wage laws, too. When both laws apply, the one which provides the best deal for the worker is the law to use.

The Missouri minimum wage and overtime law does not allow the fluctuating work week, or Belo plan, for employees. Under this plan, employees are paid a set amount for a standard workweek, which may be more or less than 40 hours. Many employees object to Belo plans, because they result in the employee getting a smaller overtime premium when they work more. Belo plans are used in other states in industries like ski resorts and golf courses where the hours vary seasonally. They are legal under federal law and in most states. However, they are not legal in Missouri. 

Montana’s state minimum wage will be $6.25 per hour as of January 1, 2008. Some employers–those with $110,000 or less gross revenue–can legally pay only $4.00 per hour.

Large businesses in Minnesota pay workers the state minimum of $6.15 per hour. Smaller companies, those that bring in less than $625,000 per year in revenue, only pay $5.25 per hour.

Consider Kansas with a minimum wage of $2.65. If an employee is covered by state and federal law, clearly the federal minimum of $5.85 gives the worker more money, thus a bigger benefit. The federal minimum would apply.

In addition to differences from the federal minimum wage law, several states have written some unusual conditions into their state minimum wage statutes.

Agricultural workers in Massachusetts can legally be paid a mere $1.60 per year. Employees who also earn tips have a legal minimum of $2.63. The rest of the industries, however, pay one of the top five highest minimum wages in the country, $8.00 per hour as of the year 2008.

Washington will take the top spot with $8.07 per hour on January 1, 2008.

Maryland has a state minimum wage of $6.15, but it doesn’t apply to part-time employees over 61 and under 16. The exclusion applies to younger workers who work up to 20 hours per week and to the over 61 age group who work up to 25 hours per week. Some companies in Maryland, including amusement parks, hotels and restaurants, don’t have to pay overtime either.

School bus drivers in Alaska benefit from the quirks of their state minimum wage law. The minimum wage is $7.15 per hour, and the law demands that bus drivers receive wages of $14.30 per hour, or twice the minimum. 

 

Last 10 posts by Amelia

« Workplace Violence in Illinois
Arizona Minimum Wage Goes to $6.90 »
Posted in Employment Laws, Minimum Wage, Missouri, Overtime, Wage and Hour

RELATED LINKS

Subscribe to RSS

Subscribe to this blog via email
Delivered by FeedBurner
add