Following the recent change in the minimum wage in Missouri, businesses operating within the state must take steps to ensure they comply with the updated regulations. It’s essential to make necessary revisions to align with new labor laws to avoid potential penalties. For detailed information on Missouri’s minimum wage increase, please refer to the following information or visit the Missouri state website
What is the New Minimum Wage Rate in Missouri?
Effective January 1, 2023, Missouri’s minimum wage will increase to $12.00 per hour, up from the previous rate of $10.30 per hour that was implemented on January 1, 2021.
Tipped employees will receive half the standard minimum wage, meaning employers must pay them a minimum of $6.00 per hour.
What Effects Will This Change Have on Employers?
Businesses in Missouri should guarantee that they are consistent with the new minimum wage rate permitted by law. As a result, they will be required to pay their workers at least $12 per hour or $6.00 per hour for tipped workers.
In order to ensure that they are calculating and paying their employees at the appropriate wage rate, employers will also need to update their payroll systems. Additionally, employers will need to check to see that they are adhering to all other relevant labor laws and regulations.
What are the Consequences of Non-Compliance?
Businesses that are viewed as resistant to the new minimum wage rate in Missouri will likely have to deal with penalties and fines. Fines, interest on unpaid wages, and back pay to employees are all examples of these penalties.
In addition, employers in Missouri who break the law regarding the minimum wage may face criminal charges, which could lead to fines and imprisonment.
How can Employers Guarantee Compliance?
Business owners in Missouri should take the following steps to ensure that they are compliant with the new minimum wage rate:
- Examine the new rate for the minimum wage and make sure that every employee is paid at least the new rate.
- Ensure that employees are paid at the correct wage rate by updating payroll systems.
- Educate managers and supervisors about the new minimum wage rate, as well as any other labor laws and regulations that may be relevant.
- Monitor compliance with the new minimum wage rate and, if necessary, take essential corrective action.
- If you have any questions or concerns about how to comply with the new minimum wage rate, talk to an HR professional or lawyer.
The increase in Missouri’s minimum wage is a significant change for the state’s employers. Organizations should guarantee that they are compliant with the new minimum wage and do whatever it takes to update their financial frameworks, train managers and supervisors, and screen for consistency.
Companies must take these changes seriously and act quickly to ensure compliance because failure to adhere to the new minimum wage rate could result in significant penalties and fines. Companies can ensure that they are operating in a legal and ethical manner while also providing fair compensation to their employees by taking these steps.
Contact us today if you have any questions about your state’s minimum wage requirements.