Missouri Hiring Laws for Small Businesses
Missouri has no annual LLC report fee and one of the more recent adopters of paid sick leave. The rules you need before hiring your first Missouri employee.
$13.75/hr
as of 2025
Next scheduled payday
Enforceable
Yes
Wage & Hour
Minimum wage: $13.75/hr
This is the Missouri statewide minimum as of 2025. The federal minimum ($7.25) applies where a state has no higher rate. Some cities within Missouri may set higher local minimums — check municipal ordinances.
Break requirements
Federal FLSA only — no state-specific break requirements.
Overtime
Federal FLSA requires 1.5x pay for hours over 40 in a workweek for non-exempt employees. Some states (notably California) also require daily overtime after 8 hours in a day.
Paid sick leave
Missouri has a statewide paid sick leave law. Accrual rate typically 1 hour per 30-40 hours worked, with annual usage caps.
Termination & Final Pay
Final paycheck timing
- Involuntary termination: Next scheduled payday
- Voluntary quit: Next scheduled payday
Vacation payout on separation
Not automatically required by state law — depends on your written policy and offer letters. Written "use it or lose it" policies are generally allowed.
At-will employment
Missouri is an at-will state — either party can end employment at any time, for any legal reason (not for a discriminatory or retaliatory reason). Written employment contracts and public policy exceptions can limit this.
Non-Compete Agreements
Non-compete agreements are enforceable when reasonable in scope, geography, and duration. Courts scrutinize but don't automatically strike them down.
Contractor vs Employee Classification
IRS common-law test — control, financial arrangement, and relationship type. More flexible than ABC.
Why this matters: Misclassifying an employee as a contractor exposes you to back wages, unemployment tax, workers comp, and penalties. State enforcement has tightened significantly since 2018.
First-Employee Onboarding Checklist
- Federal: Get EIN (irs.gov), register for federal payroll (Form 941 quarterly)
- State withholding: Register with Missouri Department of Revenue
- State unemployment insurance (SUI): Register with Missouri unemployment agency and pay quarterly
- Workers' compensation: Required at 5 employees. Purchase through private market.
- New hire reporting: Report to Missouri new hire directory within 20 days of hire (federal PRWORA requirement)
- I-9 verification: Complete within 3 business days of hire (federal requirement)
- W-4: Get federal W-4 and state equivalent (if income tax applies)
- Required posters: Federal + Missouri labor law posters (available free from state DOL)
Missouri-Specific Employment Rules
The rules and quirks that make hiring in Missouri different from other states.
- Missouri minimum wage is $13.75/hr for 2025 (ballot measure passed 2024, rising to $15 by 2026).
- Missouri's Proposition A (2024) requires paid sick leave — 1 hour per 30 hours worked.
- Missouri is a right-to-work state (repealed by voters in 2018 referendum; state remains not right-to-work).
Reference only — not legal advice.
Employment law changes frequently and turns on facts. For specific hiring decisions, terminations, or contractor classifications, consult a Missouri-licensed employment attorney. City-level rules (Seattle, NYC, SF, etc.) may add requirements beyond state law.