Introduction to employment laws in Missouri
Overview
Missouri has several state-specific labor laws that differ from federal regulations. These laws cover minimum wage, workplace safety, and discrimination, ensuring essential worker protections. While Missouri’s labor laws are less stringent than some other states, understanding and following these regulations is crucial for maintaining a compliant workplace.
In this guide, we’ll help keep you compliant as you onboard and manage workers in Missouri.
Employing in Missouri: Key employment laws and practices
Standard work hours
In Missouri, there are no specific laws defining full-time or part-time employment hours. Most employers consider an employee who works 30-40 hours per week as full-time. Self-employed professionals and contractual employees have different arrangements based on their specific contracts.
Minimum wage and overtime
Missouri’s minimum wage is $12.30 per hour, higher than the federal minimum wage. This applies to almost all private-sector employees working in the state.
Missouri requires employers to pay eligible employees overtime at a rate of one and a half times their regular pay rate for every hour worked beyond 40 hours in a workweek. This is consistent with federal regulations on overtime pay.
Employees of seasonal and recreational establishments must be paid overtime for all hours worked in excess of 52 hours in a workweek.
Insurance and benefits
Missouri law mandates a few employer-provided benefits. For instance, employers with two to 19 employees are required to offer healthcare continuation coverage under state law, similar to the federal COBRA regulations.
Employees are also entitled to workers’ compensation insurance, covering medical costs and lost wages if they are injured or fall ill due to work-related activities.
While not stipulated in law, employers often choose to provide additional benefits like dental and vision insurance, retirement plans such as 401k, life insurance, and disability insurance.
Benefit | Requirement |
Health insurance | Required for employers with 20+ employees |
Dental/vision insurance | Optional |
Retirement plans (401k) | Optional |
Workers’ compensation | Mandatory for most businesses |
Meal and rest periods
Missouri employment laws do not specifically mandate employers to provide rest or meal breaks to employees who are 16 years or older. This means that an employer is not obligated by law to give an employee relief periods or lunch breaks, regardless of the number of hours worked.
For employees under the age of 16, Missouri law mandates a rest interval of at least 30 minutes after five consecutive hours of work.
While there’s no state law requiring meal or rest breaks for adults, it’s worth noting that federal laws do have some stipulations. The Fair Labor Standards Act (FLSA) requires employers to pay for short rest breaks (usually five-20 minutes). However, meal breaks that last at least 30 minutes can be unpaid.
Multiplier makes it easy to manage benefits for Missouri employees.
Anti-discrimination laws
Missouri state laws align with federal laws in prohibiting employment discrimination, but they also provide some additional protections. Specifically, the Missouri Human Rights Act (MHRA) makes it unlawful for employers with six or more employees to discriminate based on race, color, religion, national origin, sex, ancestry, age, or disability.
The MHRA also prohibits harassment based on these protected classes, as well as retaliation against individuals who oppose discriminatory practices or participate in an investigation under the MHRA.
Employers also have affirmative duties under the MHRA, including providing reasonable accommodations for known limitations related to an employee’s disability or religious practices unless such accommodations would create undue hardship. The MHRA also extends protections to individuals on the basis of their genetic information and familial status.
Missouri has an equal pay law that prohibits gender-based wage discrimination. It is illegal for an employer to pay female employees lesser wages than male employees for equal work unless the difference can be attributed to a factor other than sex.
Leave policies
Employees in Missouri have a few types of protected leave they can make use of. The state mandates employers to provide time off for voting, jury duty, and military service. Missouri also provides leave protections for crime victims and emergency responders. Employers with 20 or more employees must also provide time off for employees dealing with domestic or sexual violence. Employers must provide Civil Air Patrol leave if they have 50 or more employees.
Missouri does not have a law mandating sick leave or vacation leave. However, if an employer chooses to provide these benefits, they must comply with the terms of their established policy or employment contract.
Leave type | Description |
Voting leave | Employers must provide up to three hours off work to vote if an employee does not have three successive hours free while polls are open. |
Jury duty leave | An employer cannot discharge, threaten, or coerce an employee because the employee is summoned to jury duty. |
Military leave | Missouri law protects the jobs of employees who are called to active duty in the state military forces or the U.S. armed forces. |
Crime victim leave | Employees who are a victim of a crime or have an immediate family member who is a victim of a crime are entitled to take reasonable leave from work to attend court proceedings related to the crime. |
Emergency responder leave | Employers are prohibited from terminating any volunteer emergency responder due to his/her absence or lateness because of emergency response activities |
Termination laws
Missouri is an at-will employment state, which means that unless there’s a contract specifying otherwise, an employer or employee can end the employment relationship at any time, for any reason or no reason at all, with or without notice. However, it’s important to remember that even in an at-will state, employers cannot terminate employees for illegal reasons, such as discrimination or retaliation for protected activities.
However, providing two weeks’ notice is considered a professional courtesy that benefits both the employee and the employer.
Missouri law requires employers to comply with specific final pay requirements when ending employment. Whether the termination is voluntary or involuntary, employers must pay all wages due on the day of termination. If wages are not paid on this day, employers may be required to pay additional damages.
Easily onboard employees in Missouri?
Safety and health
Missouri has adopted the federal Occupational Safety and Health Administration (OSHA) regulations and enforces them through the Missouri Department of Labor and Industrial Relations. Employers have a general duty under the law to provide a workplace free from recognized hazards that cause or are likely to cause death or serious physical harm.
Missouri’s Indoor Clean Air Act bans smoking in places of employment but allows employers to designate specific smoking areas. The designated area cannot exceed 30% of the entire workplace and must be adequately ventilated and physically separated from non-smoking areas.
Employers in Missouri have the right to prohibit employees from carrying concealed weapons onto their property and in their vehicles. If an employer decides to enforce this prohibition, they must post proper signage indicating that firearms are not allowed.
Taxes in Missouri
The state of Missouri levies various taxes on both employers and employees. These encompass income taxes, unemployment insurance taxes, and workers’ compensation insurance premiums.
Tax | Description |
State Income Tax | Missouri has a progressive income tax system with rates ranging from 2% to 4.95%, depending on the income level. Employers are responsible for withholding this tax from employee wages and remitting it to the state. |
Federal Unemployment Tax Act (FUTA) Tax | Employers pay this federal tax, which funds state workforce agencies. The FUTA tax rate is 6.0%, but employers may receive a credit of up to 5.4% for SUTA (State Unemployment Tax Act) taxes paid, making the effective FUTA tax rate as low as 0.6%. |
State Unemployment Tax Act (SUTA) Tax | This state tax is paid by employers to fund the Missouri unemployment insurance program. The new employer rate for Missouri is 2.511% and the wage base is $13,500. |
Workers’ Compensation Insurance | Missouri law requires most employers to carry workers’ compensation insurance to cover employees in case of occupational injuries or illnesses. The cost of this insurance varies depending on the nature of the business and its claims history. |
Managing Missouri employees with an Employer of Record (EOR)
Dealing with the intricate web of employment laws and HR compliance in Missouri is a challenging task for businesses. With numerous federal and state regulations that govern everything from fair employment practices to wage and hour rules, there’s a lot to bear in mind.
At Multiplier, we understand these complexities and offer comprehensive solutions that simplify HR processes and ensure compliance with Missouri employment laws. For businesses hiring in Missouri from abroad, our Employer of Record solution allows for legally hiring full-time workers without having to set up local entities.
Plus, our Payroll platform ensures that the payroll for distributed teams in the U.S. fully comply with all taxes, contributions, and withholdings.
Book a demo today to start building a global team while maintaining legal compliance every step of the way.
FAQs
In Missouri, the key regulations governing employment laws include the Fair Labor Standards Act (FLSA), the Missouri Human Rights Act, and the Missouri Whistleblowers Protection Act.
These laws cover vital aspects such as discrimination, harassment, equal pay, overtime, minimum wage, child labor, health care continuation coverage, time off and leaves of absence, and smoke-free workplaces, among others.
The MHRA applies to private employers with six or more employees and prohibits discrimination based on factors like race, color, religion, national origin, disability (physical or mental), age (40-69 years), and sex (including pregnancy).
Harassment based on these factors is also prohibited. Employers are also required to provide reasonable accommodations for the known limitations of an employee or applicant with a disability.
Missouri’s minimum wage is currently higher than the federal minimum wage, at $12.30 per hour. As for overtime, state law requires employers to pay covered employees overtime at a rate of 1.5 times the regular rate for all hours worked in excess of 40 hours in a workweek.
In Missouri, employees are entitled to certain leaves or time off, including voting leave, jury duty leave, crime victim leave, emergency responder leave, military leave, and Civil Air Patrol leave.
From a legal perspective, businesses in Missouri should be aware of the state’s laws relating to pre-employment drug and alcohol testing. This testing is permitted after a conditional job offer and if all applicants for the same job are tested.
Also, compliance with state laws regarding minimum wage, overtime rules, health care continuation coverage obligations, and time off and leaves of absence is crucial during the onboarding process.
