Is Your Business Exempt from the Missouri Minimum Wage Hike?
If you run a small business, the recent Missouri minimum wage hike may have you concerned. However, there are many small businesses which receive an exemption from minimum wage laws in Missouri. Is your company one of these that receives a Missouri minimum wage exemption? Here's a quick look at the new law that can help you decide where your company falls.
When Proposition B passed in November, increasing the Missouri minimum wage by $0.85 annually for five years, most Missouri business owners were required to provide a minimum of $8.60 per hour starting on January 1, with businesses where workers will be expected to receive a tip for their work falling short of that mark, as tips are expected to make up the difference to or above the minimum wage rate.
However, that doesn't mean that all other businesses are required to pay minimum wage. A Missouri minimum wage statue states that retail or service companies who have an annual gross volume of sales or business completed of under $500,000 are actually exempt from the state minimum wage laws. This may make a huge difference for a large number of small businesses in the state.
"I think it's a matter of opinion, but in my opinion, I would hate to see us lose a lot of small business because they couldn't keep up with the increase. You know, you talk about 85 cent increases for an employee per hour it doesn't sound like much but if you have five or six employees over a years’ time it adds up.” stated Sandra Williams, Executive Director of the Kirksville Area Chamber of Commerce.
Though the Missouri minimum wage is rising, if your company is fortunate enough to have an exemption from minimum wage, you can take advantage of the favorable market conditions to grow your company. But how do you stay on top of these changes and develop a strategy that allows you to take advantage of legal and market conditions? The experienced professionals at AccountRely can help. We have a range of business professionals who would be happy to help you develop a solid strategy for your company's benefit. Please feel free to contact us today to get started.