Missouri's tipped wage is $7.50 cash, requiring employers to ensure a total compensation of $15.00/hour.
Missouri law permits employers to pay tipped employees a cash wage of 50% of the state minimum wage, provided the employee's tips plus the cash wage equal at least the full state minimum wage. As of January 1, 2026, with the state minimum wage at $15.00 per hour, the minimum cash wage for tipped employees is $7.50 per hour. Employers must make up any shortfall if tips do not reach the $15.00 threshold.
Tipped Wage (50% of Minimum)
$7.50 cash for tipped workers + tip makeup to $15.00. 50% of minimum is more generous than most tip-credit states.
What those rules do as a Missouri shift is created.
Teambridge automatically calculates the correct minimum cash wage and monitors for tip credit compliance for all tipped employees in Missouri. This ensures your payroll remains compliant with state regulations, even with fluctuating tips.
Verify cash wage floor
For every shift, Teambridge ensures the employee's base wage is at least $7.50 per hour, the minimum cash wage for tipped employees in Missouri as of January 1, 2026.
Monitor total compensation
Teambridge tracks the total hourly earnings (cash wage + declared tips) for each tipped employee to ensure it meets or exceeds the Missouri state minimum wage of $15.00 per hour.
Flag tip credit deficiencies
If an employee's combined cash wage and tips fall below the $15.00 state minimum wage, Teambridge flags the shortfall and calculates the necessary employer "tip makeup" payment.
Stop worrying about Missouri compliance.
Missouri's wage and hour rules can be complex. Let Teambridge handle the intricacies of compliance, so you can focus on your business.
Missouri Tipped Wage Requirements
Missouri law allows employers to take a "tip credit" against the state minimum wage for employees who customarily and regularly receive tips. This credit cannot exceed 50% of the state minimum wage, meaning the employer must pay at least half of the minimum wage in direct cash wages.
Mo. Rev. Stat. § 290.500
2. No employer shall be required to pay any employee who is a "tipped employee", as such term is defined by the Fair Labor Standards Act of 1938, 29 U.S.C. Section 203(t), and its subsequent amendments, the minimum wage provided in subsection 1 of this section if the employer can establish by payroll records or other facts that the employee receives tips in an amount sufficient to bring the employee's total compensation up to the minimum wage established by subsection 1 of this section. The employer shall pay a tipped employee not less than fifty percent of the minimum wage established by subsection 1 of this section. This subsection shall not apply to any employee for whom the payment of the minimum wage provided in subsection 1 of this section would violate the Fair Labor Standards Act of 1938, 29 U.S.C. Section 201, et seq., and its subsequent amendments.
Cash Wage Requirement
Effective January 1, 2026, the Missouri state minimum wage is $15.00 per hour. Therefore, employers must pay tipped employees a direct cash wage of at least $7.50 per hour (50% of $15.00). This cash wage is non-negotiable and must be paid regardless of the tips received.
Tip Credit and Makeup Pay
Employers can take a tip credit of up to $7.50 per hour against the state minimum wage. However, if an employee's cash wage plus actual tips received do not total at least $15.00 per hour for all hours worked in a workweek, the employer must pay the difference. This ensures that the employee's total compensation always meets the full state minimum wage.
How Teambridge keeps your Missouri operations compliant.
Teambridge’s compliance engine is purpose-built to navigate the complexities of Missouri's wage and hour laws, automating the calculation and application of tipped wage rules to prevent common errors and ensure fair compensation.
Automatic Tipped Wage Setup
Teambridge automatically configures the base cash wage for all Missouri tipped employees at $7.50/hour, reflecting the 50% minimum wage rule, effective January 1, 2026.
Integrated Tip Reporting
Employees report tips through the Teambridge platform, which are then integrated into payroll calculations, providing real-time visibility into total compensation.
Automated Tip Makeup Alerts
Teambridge continuously monitors each employee's total hourly earnings. If the combined cash wage and tips fall below the $15.00 state minimum, the system automatically calculates and flags the required employer makeup payment.
Detailed Records for Verification
All wage calculations, tip reports, and makeup payments are meticulously logged, providing a comprehensive audit trail to demonstrate compliance with Missouri labor laws.
People also ask.
What is the minimum cash wage for tipped employees in Missouri?
As of January 1, 2026, the minimum cash wage for tipped employees in Missouri is $7.50 per hour. This is 50% of the state's full minimum wage of $15.00 per hour.
What is the total minimum hourly wage an employer must ensure for tipped employees?
Employers must ensure that a tipped employee's total compensation (cash wage plus tips received) equals at least the full state minimum wage of $15.00 per hour for all hours worked.
What happens if a tipped employee's tips do not bring them up to the full minimum wage?
If an employee's cash wage of $7.50 per hour plus their earned tips do not reach the $15.00 per hour state minimum wage, the employer is legally obligated to make up the difference. This is often referred to as "tip makeup" pay.
Can employers use a tip credit for all employees?
The tip credit can only be applied to employees who customarily and regularly receive tips. Employers must be able to prove through payroll records or other facts that the employee receives sufficient tips to utilize the credit.
Are there any restrictions on tip pooling in Missouri?
Missouri law generally aligns with federal FLSA rules regarding tip pooling. Employers cannot include non-tipped employees (e.g., cooks, dishwashers) in a mandatory tip pool. Tips must be retained by the employees who customarily and regularly receive them.
How does the Missouri tipped wage compare to federal law?
Missouri's tipped wage of $7.50 per hour (50% of state minimum wage) and its total minimum wage requirement of $15.00 per hour are significantly higher than the federal tipped minimum wage of $2.13 per hour and federal minimum wage of $7.25 per hour. Employers in Missouri must comply with the more generous state law.