Compliance Watch:

What are my rights as a salaried employee in Missouri?

Salaried employment refers to an agreement in which an employee receives a fixed and consistent compensation at the end of every pay period. Typically, the compensation paid to salaried employees in Missouri is not subject to reduction regardless of the number of hours worked by the employee or the quantity and quality of their output. 

Missouri labor laws require employers to pay their salaried employees at least twice a month. However, salaried employees who meet the federal criteria for exemption as outlined by the Federal Labor Standards Act (FLSA) can be paid once a month. All salaried employees, regardless of their exemption status and frequency of salary payment, can be paid in cash, check, or any other payment instrument that is redeemable at full face value without any charge. 

Salaried employees in Missouri are either exempt from minimum wage and overtime laws or subject to both laws. Exempt employees’ minimum compensation is set by the FLSA while the minimum compensation of non-exempt employees is set by state labor laws.

Salaried employees in Missouri have certain basic rights and protections in the workplace. These rights, which are governed by a combination of federal and state laws, include: 

• Minimum Compensation: Non-exempt salaried employees in Missouri are entitled to compensation of at least the state’s minimum wage of $12.30 per hour for non-tipped employees and $6.15 per hour for tipped employees. Please note that an employer is required to bring the wages of tipped employees up to $12.30 per hour if an employee does not earn enough tips to reach the minimum wage. Comparatively, exempt employees in the state are entitled to a minimum salary of $648 per week. 
• Overtime Pay: Non-exempt employees in Missouri are entitled to overtime pay for all time worked over 40 hours in a workweek. They earn overtime pay at a rate of 1.5 times their regular rate. 
• Protection from Discrimination: Missouri protects salaried employees in the state from any form of workplace discrimination in recruitment, compensation, promotion, training, and leave based on race, color, gender, religion, ancestry, disability, age, and national origin. The employees are protected from harassment and retaliation as well. 
• Safe Working Conditions: Every employee in Missouri has the right to a safe and healthy work environment, the right to receive relevant training on safety in the workplace, and protection from retaliation for reporting workplace hazards. 
• Family and Medical Leave: Exempt employees in Missouri have the right to take up to 12 weeks of job-protected unpaid leave for select family and medical reasons as per the Family and Medical Leave Act (FMLA). 
• Workers’ Compensation: Salaried employees who sustain work-related injuries or catch occupational diseases due to their work are entitled to medical care, compensation for lost wages, and permanent disability benefits. The families of employees who succumb to work-related injuries or occupational diseases are entitled to survivor benefits.

Yes. Although salaried compensation is part of the federal criteria for exemption from overtime pay, not all salaried employees in Missouri are excluded from earning overtime pay. Therefore, overtime pay applies to non-exempt salaried employees in the state, who are entitled to overtime for all time worked over 40 hours in a workweek with the following exceptions:

• Volunteers.
• Employees of seasonal children and youth camps.
• Employees of educational institutions who are working in exchange for tuition, accommodation, and other benefits.
• Casual babysitters.
• Casual newspaper delivery people and caddies.
• Sales employees on a commission or partial commission basis whose employers have limited control over their work or work location.
• Individuals working for retail businesses with gross sales or revenue of less than $500,000.
• Incarcerated offenders.

Yes, employers in Missouri are allowed to deduct part of their employees’ wages under the following circumstances:

• If authorized by law.
• If authorized by the employee in writing.
• To recover cash shortages, the cost of property damage, and other related costs.

Employers in Missouri are not required by law to provide meal or rest breaks. Rather, the law leaves decisions on breaks solely to private agreements between employees and employers. 

Similarly, the state does not enact any laws that require employers to offer paid or unpaid family, sick, bereavement, vacation, or holiday leave. However, employers are required to allow employees reasonable time to vote, respond to summons for jury duty, and serve on juries when called upon. 

While Missouri labor laws don’t mandate family and sick leave for employees in the state, employers in the state are required to recognize the provisions of the FMLA. Therefore, exempt employees in the state are entitled to up to 12 weeks of job-protected unpaid leave every 12 months, which can be used to recuperate or take care of an ailing immediate family member, and up to 26 weeks of leave to care for an injured or ill service member in their immediate family.

The FLSA defines flexible work arrangements as any work schedules that deviate from the traditional 8-hour workdays and 40-hour workweeks. Like the FLSA, Missouri state laws do not address or limit flexible work arrangements. Rather, the law leaves the determination of work schedules to private agreements between employers and employees. Therefore, salaried employees in the state can request alternative work arrangements. Such requests should be approved by the director of an employee’s division, who also has the authority to adjust such arrangements to meet changing business needs.

In Missouri, exempt status refers to exclusion from the state’s minimum wage and overtime laws. The state designates professional, executive, and administrative employees who meet the federal criteria for exemption as exempt. In addition to the three exemption categories, the state designates select employees such as babysitters, volunteers, and camp counselors as exempt from minimum wage and overtime requirements.

Exempt employee status has the following implications for employees:

• Salary Structure: Employees who meet the federal criteria for exemption typically earn a fixed salary regardless of the quality and quantity of their output. Their income remains consistent regardless of any fluctuations in the number of hours worked.
• Autonomy: Exempt employees exercise independent judgment and discretion in their duties, giving them autonomy over their work. Additionally, they are not required to track hours worked and may request flexible work arrangements. 
• Benefits: Exempt employees typically have access to more employee benefits compared to non-exempt employees. 
• Job Security: Exempt employees typically perform fundamental duties such as professional and managerial roles, which are essential, making the employees less susceptible to layoffs. 
• Overtime: Exempt employees are not eligible for overtime regardless of the number of hours worked. 

Exempt status has the following implications for employers: 

• Payroll Management: Exempt employees earn a fixed predetermined salary that is not determined by the number of hours worked, which simplifies payroll management.
• Compliance: Employers must ensure that they classify exempt employees accurately based on the FLSA criteria for exemption to avoid potential legal and financial consequences.
• Flexibility: Exempt employees may request flexible work schedules, requiring employers to provide accommodations for alternative work schedules.

In Missouri, employee exempt status is primarily determined by the FLSA. To qualify as an exempt employee, an individual must meet the following criteria related to their job duties, salary level, and compensation basis:

1. Salary Basis: To qualify as exempt, an employee must be paid on a salary basis. An exempt employee receives a fixed salary at least once every calendar month regardless of the quality of their work, number of hours worked, and the quality of their output.
2. Salary Level: Exempt employees in Missouri are entitled to a minimum compensation of $684 per week ($35,568 a year). 
3. Duties: Missouri recognizes three categories of exempt duties. Therefore, to qualify for the federal exemption in the state, an employee’s duties must fall under any of the following exempt categories: 
   • Executive Exemption: Executive employees who meet the salary level and basis criteria are considered exempt if they manage an organization or department, supervise two or more employees, and have the authority to hire, fire, and promote employees.
   • Administrative Exemption: An administrative employee who meets the salary basis and level criteria qualifies for exemption if they exercise discretion and independent judgment in their work and their main duties involve office or non-manual work that is directly related to the management of a business and its operations.
   • Professional Exemption: Employees who meet the salary level and basis criteria qualify for the professional exemption if their work requires advanced knowledge in a field of science or learning that is customarily acquired through education or specialized training.

Please note that Missouri does not exempt software engineers, computer programmers, systems analysts, and other computer employees from minimum wage and overtime requirements even when they meet the salary level and compensation basis criteria. Similarly, the state does not recognize the FLSA’s exemption for outside sales employees.

Non-exempt salaried employees in Missouri are entitled to the state’s minimum wage of $12.30 per hour. Exempt employees, on the other hand, are entitled to the federal minimum salary threshold of $684 per week. Their salary remains constant regardless of hours worked.

Eligible salaried employees in Missouri earn overtime for all time worked beyond 40 hours in a workweek. Overtime is compensated at a rate of 1.5 times their regular rate as per Missouri overtime laws. 

Non-exempt salaried employees of state and local government agencies can opt for compensatory time in place of monetary compensation for overtime. Comp time is compensated at a rate of 1.5 hours of time off for every one hour of overtime for up to 240 hours in a calendar year. Once an employee has accumulated 240 hours of comp time in 12 months, they revert to monetary compensation for overtime.

Employers in Missouri may withhold part of an employee’s salary under the following circumstances: 

• Deductions Authorized by Law: Employers are allowed to deduct federal and state taxes and court-ordered wage garnishments such as alimony and child support from an employee’s salary 
• Voluntary Deductions: Employers can deduct employee-authorized contributions to health, savings, and pension plans from the salary of the employee. However, these deductions must be authorized by the employee in writing.
• Recovery of Losses: Deductions to recover cash shortages, the cost of property damage, and other similar losses incurred by the employer due to an employee’s actions are permissible.

Missouri provides various benefits and protections for employees, as mandated by state and federal labor laws. These include: 

• Minimum Compensation: Non-exempt employees in Missouri are entitled to a minimum compensation of $12.30, which is higher than the federal minimum wage. Exempt employees in the state earn at least $684 per week. 
• Overtime Pay: Eligible employees in the state are entitled to overtime pay for all time worked beyond 40 hours in a workweek. 
• Workplace Safety: Missouri laws require employers to provide safe working conditions for their employees. 
• Protection from Discrimination: Missouri enacts laws that protect all employees in the state from workplace discrimination, harassment, and retaliation for reporting labor violations. 
• Family and Medical Leave: Exempt employees in Missouri are entitled to up to 12 weeks of unpaid leave for certain family or medical reasons without fear of losing their job.
• Workers’ Compensation: Employees who sustain work-related injuries or illnesses are entitled to workers’ compensation benefits, including medical expenses, wage replacement, and disability benefits.

The Missouri Department of Labor is responsible for wage and hour disputes in the state. You can report minimum wage, overtime, or other wage-related concerns to the department by filling out the Missouri Minimum Wage Complaint Form. The state defers workplace safety concerns in the private sector to the Occupational Safety and Health Administration (OSHA). You can file a safety complaint with OSHA by filling out the OSHA Online Complaint Form.