Missouri Minimum Wage 2026: $15.00 an Hour After Proposition A
Missouri minimum wage is $15.00 an hour as of January 1, 2026, up from $13.75 in 2025. Tipped employees get at least $7.50 in cash. The automatic inflation increases voters approved in Proposition A were removed by HB 567, so no 2027 increase is scheduled.
The Missouri minimum wage is $15.00 per hour as of January 1, 2026. Tipped employees must receive a cash wage of at least $7.50, which is 50 percent of the minimum, plus enough in tips to reach $15.00. The $15.00 figure is the last step of Proposition A, the ballot measure voters passed in November 2024. The measure also called for inflation adjustments starting in 2027 and a paid sick leave mandate, but the General Assembly repealed both in House Bill 567, which took effect August 28, 2025. As a result, the rate stays at $15.00 until the legislature or voters act again.
Reviewed September 2026
Rates on this page were checked against the Missouri Department of Labor and Industrial Relations and the US Department of Labor state minimum wage tables as of July 1, 2026. Note that some national trackers still describe Missouri as indexed to inflation; that provision was repealed in 2025. See our labor law compliance guides for other state rules.
Current Missouri Minimum Wage
Missouri's minimum wage rose from $13.75 to $15.00 on January 1, 2026, a $1.25 increase and the largest single step in the state's history. The Missouri Department of Labor and Industrial Relations confirms the rate and notes the main coverage exception: "Employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate." Those employers are still covered by the federal $7.25 if the FLSA applies to them, which it usually does.
Proposition A, approved by about 58 percent of voters in November 2024, set the two steps ($13.75 in 2025 and $15.00 in 2026) and added annual cost-of-living adjustments from January 2027 onward. In its 2025 session the General Assembly passed HB 567, which kept the two scheduled increases but removed the automatic adjustments and repealed the paid sick leave requirement. Governor Kehoe signed the bill on July 10, 2025 and it took effect on August 28, 2025.
The practical effect for employers is stability. There is no formula that will move the rate on January 1, 2027. Any future increase will come from a new statute or another ballot initiative.
Missouri Minimum Wage vs Federal Minimum Wage
| Missouri 2026 | Federal (FLSA) | |
|---|---|---|
| Standard hourly minimum | $15.00 | $7.25 |
| Tipped cash wage | $7.50 (50 percent of minimum) | $2.13 |
| Maximum tip credit | $7.50 | $5.12 |
| Annual adjustment | No (removed by HB 567 in 2025) | No |
| Small business exemption | Retail or service under $500,000 in annual sales | Enterprise coverage at $500,000 in sales |
| Local rates allowed | No, preempted | Not applicable |
Employees covered by both laws receive the higher rate, so $15.00 governs across Missouri except for the narrow group of employers exempt from both.
Tipped Minimum Wage in Missouri
Missouri sets the tipped cash wage as a percentage rather than a fixed dollar amount: employers must pay tipped employees at least 50 percent of the minimum wage. At $15.00 that is $7.50 per hour, and the maximum tip credit is the other $7.50. The Department of Labor's wording is that employers must pay "at least 50 percent of the minimum wage, $7.50 per hour, plus any amount necessary to bring the employee's total compensation to a minimum of $15.00 per hour."
Because the cash wage is a percentage, it has risen with every increase: $5.15 in 2021, $5.58 in 2022, $6.00 in 2023, $6.15 in 2024, $6.88 in 2025, and $7.50 in 2026. Employers must make up any shortfall in each workweek where tips plus cash wages average less than $15.00.
Missouri's tipped cash wage is among the higher ones nationally. Compare it with the federal $2.13, or with neighboring Kansas and Oklahoma, which both use the federal figures.
Missouri Minimum Wage Increase Schedule
| Effective date | Rate | Basis |
|---|---|---|
| January 1, 2021 | $10.30 | Proposition B (2018) step |
| January 1, 2022 | $11.15 | Proposition B step |
| January 1, 2023 | $12.00 | Proposition B final step |
| January 1, 2024 | $12.30 | CPI adjustment |
| January 1, 2025 | $13.75 | Proposition A (2024) step 1 |
| January 1, 2026 | $15.00 | Proposition A step 2 |
| January 1, 2027 | $15.00 | No change; indexing repealed by HB 567 |
Missouri has raised its minimum wage through the ballot three times since 2006. Proposition B in 2018 carried the rate from $7.85 to $12.00, and Proposition A finished the climb to $15.00. Employers who plan multi-year budgets should assume $15.00 holds until new legislation appears.
Local Minimum Wages in Missouri
None. Missouri law preempts local minimum wage ordinances. St. Louis passed a city minimum wage in 2015 and Kansas City voters approved one in 2017, but a 2017 state law (HB 1194) voided them and blocked any future local rates. Every Missouri employer, from St. Louis to Springfield, uses the $15.00 statewide figure.
Who Is Covered and Who Is Exempt
Missouri's minimum wage law covers most private employers. The main exemptions, as set out in the Missouri statutes and summarized by the Department of Labor, include:
- Retail or service businesses with annual gross sales under $500,000
- Public employers (the minimum wage law applies to private employers only, though most public employees are covered by the FLSA)
- Employees in bona fide executive, administrative, or professional roles who meet the federal tests
- Certain agricultural employees and some employees of seasonal recreational facilities
- Students working for the school they attend, and some youth workers under specific conditions
Being paid a salary does not by itself make a worker exempt. The duties tests and the $684 per week federal salary threshold both have to be met; see exempt vs non-exempt employees.
Overtime and the Minimum Wage
Missouri requires overtime at 1.5 times the regular rate after 40 hours in a workweek, matching the FLSA. Employees of seasonal amusement or recreation businesses have a 52-hour threshold under state law. There is no daily overtime.
For a minimum wage employee working 45 hours:
- 40 hours at $15.00 = $600.00
- 5 overtime hours at $22.50 = $112.50
- Weekly gross pay = $712.50
For tipped employees, overtime is figured on the full $15.00, so the overtime rate is $22.50, and the employer may apply the tip credit to overtime hours as well. Run other scenarios in the overtime calculator and read overtime pay laws by state for the federal detail.
What a Minimum Wage Worker Earns in Missouri
| Schedule | At $15.00 |
|---|---|
| 40-hour week | $600.00 |
| Month (173.33 hours) | $2,600.00 |
| Year (2,080 hours) | $31,200 |
Gross figures before taxes. Convert other rates with the salary to hourly calculator, and see what gross pay includes.
Common Minimum Wage Mistakes in Missouri
The 2025 legislative changes created confusion that shows up in payroll practice:
- Budgeting for a 2027 CPI increase that will not happen. Some payroll vendors and trackers still list Missouri as indexed. HB 567 removed the adjustment, so the rate stays at $15.00 until new legislation passes.
- Claiming the $500,000 retail exemption too broadly. The exemption applies to retail or service businesses with gross annual sales under $500,000; it does not cover manufacturers, construction firms, or businesses above the threshold, and most exempt employers still owe the federal $7.25.
- Paying tipped employees a fixed $7.50 without checking tips. The cash wage is a floor; the employer must make up any weekly shortfall below $15.00.
- Applying the wrong overtime threshold. Only seasonal amusement or recreation businesses get the 52-hour threshold. Everyone else owes overtime after 40.
- Deducting for uniforms or shortages below the minimum. Deductions that take an employee's pay under $15.00 for the hours worked are not allowed.
Employer Compliance Checklist
- Confirm every hourly rate is at least $15.00, including for part-time and seasonal staff.
- Pay tipped employees at least $7.50 in cash and verify weekly that tips bring them to $15.00.
- Do not budget on the assumption of a 2027 increase, but watch the General Assembly session each spring for new bills.
- If you relied on Proposition A's sick leave rules between May and August 2025, review your policy; the mandate was repealed effective August 28, 2025, though hours already accrued may have been paid out or retained under your own policy.
- Keep hour records to the minute; a time card calculator or time tracking software makes weekly overtime automatic.
- Post the Missouri minimum wage summary where employees can see it and keep payroll records for at least three years.
Payroll-Ready Hours for Missouri Teams
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Frequently Asked Questions
What is the minimum wage in Missouri in 2026?
$15.00 per hour, effective January 1, 2026.
Is Missouri minimum wage going up in 2027?
No. Proposition A's automatic inflation adjustments were repealed by HB 567 in 2025, so the rate stays at $15.00 unless new legislation passes.
What is the tipped minimum wage in Missouri?
$7.50 per hour in cash, which is 50 percent of the minimum wage. Tips must bring the employee to $15.00.
Does Missouri still require paid sick leave?
No. The paid sick leave provisions of Proposition A were repealed by HB 567 effective August 28, 2025. Employers may still offer sick leave voluntarily.
Can Kansas City or St. Louis set a higher minimum wage?
No. State law preempts local minimum wages. Both cities' earlier ordinances were voided in 2017.
Which employers are exempt from Missouri minimum wage?
Retail or service businesses with less than $500,000 in annual gross sales are exempt from the state law, along with some agricultural, seasonal, and student employment. Most of those employers still owe the federal $7.25.
How much is Missouri minimum wage per year?
$31,200 for a full-time employee working 2,080 hours, before taxes.
What was Missouri minimum wage in 2025?
$13.75 per hour. It rose to $15.00 on January 1, 2026.
For a comparison with every other state, see minimum wage by state.