Over the past decade, Missouri’s voter-approved minimum wage has increased steadily year over year. Now that the 2026 rate is officially in effect, employers must continue to balance their updated payroll budgets, overtime calculations, and compliance obligations.
What you’ll learn
What you’ll learn
Key takeaways
- The minimum wage in Missouri in 2026 is $15 per hour, higher than $13.75 per hour (2025’s rate)
- Small businesses that are exempt from Missouri’s minimum wage may still need to comply with the federal minimum wage
- Special minimum wage rules apply to tipped employees
- Payroll software can help employers stay compliant with changing state and federal wage laws
This guide breaks down the 2026 Missouri minimum wage rate and key exemptions employers in the state should know about. It also walks you through best practices to help you stay compliant.
Missouri minimum wage rate for 2026
The 2026 minimum wage for the state of Missouri is $15 per hour, up from $13.75 in 2025. The increase took effect on January 1, placing the state rate way above the federal minimum of $7.25 per hour. Generally, employees are entitled to the higher of the federal and state minimum wage.
Key minimum wage updates for Missouri employers
In the November 2024 general election, Missouri voters approved Proposition A, a minimum wage law that increased the 2025 rate by $1.45 (from $12.30 in 2024) and set the 2026 rate. Proposition A also required the minimum wage to adjust annually with the cost of living and apply only to private employers. Additionally, the law had paid sick leave mandates.
In July 2025, however, Governor Mike Kehoe signed House Bill (HB) 567 into law, which kept the $15 per hour rate but changed some key provisions:
- Repealed the paid sick leave requirements
- Removed the annual minimum wage adjustments based on the cost of living
- Extended minimum wage laws to cover both private and public employers
Staying on top of both federal and state payroll updates can help keep your business compliant. However, not every employer is required to pay the minimum wage in Missouri.
Exemptions and special pay rules employers should know
Missouri’s minimum wage rules don’t apply equally to every type of employee or employer.
Tipped employees and tip credit rules
Missouri allows a tip credit, meaning employers can use a portion or all of an employee’s tips in meeting minimum wage requirements. As a result, the state’s minimum wage for tipped employees is lower than that of non-tipped employees.
In Missouri, employers must pay tipped employees at least half the state minimum wage ($7.50 per hour). However, if employees’ tips don’t bring their total hourly earnings to at least $15, employers must make up the difference. Failing to do so can lead to back pay claims and potential legal investigations.
Scenario to review
But how do you know when there’s a shortfall and how much you’re responsible for covering? For example:
- Say you have a tipped employee earning the $7.50 minimum wage who worked 40 hours in a week and received $250 in tips.
- Their base wages come to $300, so their total earnings would be $550.
- $550 divided by 40 hours equals $13.75 per hour.
The additional pay needed to make up the difference to reach Missouri’s minimum wage rate would be $1.25 per hour × 40 hours, so you would need to pay them another $50.
Good to know
Keep state overtime laws in mind when calculating tipped employee wages. In Missouri, any hours worked over 40 in a workweek must be paid time and a half. In other words, the overtime pay rate is minimum wage ($15 per hour) plus half of the minimum wage ($7.50 per hour), which equals $22.50 per hour. This rate applies even to tipped employees.
Small business exemptions
If a business is in the retail or service industry and makes less than $500,000 in annual gross revenue, it doesn’t have to follow the Missouri state minimum wage law, according to the state’s Department of Labor and Industrial Relations. Exempt employers can legally pay wages below the state minimum.
Even if a company is exempt from Missouri hourly pay laws, it may still need to compensate employees at least the federal minimum wage if it does business across state lines. Full compliance entails keeping up with both federal and state payroll updates.
Special rules for learner or apprentice exemption
In Missouri, employers can sometimes pay learners and apprentices less than the full minimum wage, but only after official approval by the state. That means, unless the Missouri Department of Labor and Industrial Relations adopts a training wage rule after a public hearing (which it hasn’t as of February 2026), employers must pay learners and apprentices at least the state minimum wage.
Stay on top of Missouri’s minimum wage updates to track any learner and apprentice exemptions the state might introduce in the future.
Compliance risks and enforcement employers face
According to Missouri’s Department of Labor and Industrial Relations, nonexempt employers who pay less than the required minimum wage can be held responsible for:
- The full amount of unpaid wages, plus an equal amount in damages
- Attorney’s fees if the case goes to court
In short, an employee underpaid $300 could seek $600 plus court costs. Paying employees the minimum wage ensures you comply with state law. But since the state rate is the bare minimum, you can choose to pay a higher rate that helps employees cover basic living expenses in Missouri, such as housing, food, transportation, and healthcare (livable wage).
World Population Review estimates that a single adult without children in Missouri needs to earn $21.27 per hour to live on a livable wage. That number rises significantly with each additional dependent, with an adult with two children needing to earn $48.31 an hour. Offering more competitive wages can increase your pool of potential employees and improve retention.
Managing Missouri payroll with confidence
Now at $15 per hour, keeping your payroll compliant with MO’s minimum wage means more than just a single baseline rate. Between covering the gap for the $7.50 tipped wage, calculating time-and-a-half overtime for servers, and tracking the recent legislative changes from HB 567, employers have plenty of moving parts to manage. Plus, as the cost of living shifts, many businesses are balancing these legal minimums with the need to pay competitive rates to retain great staff.
Getting these details right shouldn’t mean spending your evenings double-checking timesheets or worrying about tip makeup math. A dependable payroll process automates tracking hours, covering tip makeups, and managing state-specific taxes. If you’re ready to get out of the spreadsheets and get back to focusing on what matters most, OnPay is here to help.
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.