The Missouri Department of Labor and Industrial Relations announced today the state minimum wage rate for 2020 has been established according to state law at $9.45.

All private businesses are required to pay at a minimum, the $9.45 hourly rate, except retail and service businesses whose gross sales are less than $500,000, according to the department. 

Missouri voters approved Proposition B in November 2018 increasing the minimum wage 85 cents per hour each year through 2023. Missouri law doesn’t apply to public employers or allow the state’s minimum wage rate to be lower than the federal minimum wage rate.

Compensation for tipped employees must also total at least $9.45 per hour, according to the department. Employers are required to pay tipped employees at least 50 percent of the minimum wage, plus any amount necessary to bring the employee’s total compensation to a minimum of $9.45 per hour.

The state minimum wage rate for 2020 goes into effect Jan. 1, 2020.