Missouri Tip Laws and Requirements
Missouri's tip laws, updated in September 2021, differ from federal FLSA regulations by allowing employers to count tips as part of wages but limiting the tip credit to no more than 50% of the state's higher minimum hourly wage, while also adhering to federal rules that require tipped employees to be paid at least $2.13 per hour and permit tip pooling among eligible employees.
Under the Fair Labor Standards Act (FLSA), tips are regulated. Employers who meet certain criteria are permitted to take a partial credit against minimum wage obligations for tipped employees. Tipped employees include those engaged in jobs in which they regularly and customarily receive tips.
The tip credit was created by Congress in 1966, and adjustments occurred on December 28, 2021, when the 2021 Dual Jobs Final Rule went into effect. A federal court vacated portions of the final rule in October 2024, which effectively reinstated the original dual jobs regulation (29 C.F.R.531.56(e)). It recognizes that an employee may work in tipped and non-tipped occupations, and employers are only permitted to take the tip credit against minimum wage obligations for hours worked in the tipped occupation.
The FLSA mandates that a tipped worker must be paid at least $2.13 per hour. The FLSA tip credit can be equal to the difference between the direct (or cash) wage paid to the employee and the federal minimum wage. Only tips actually received by an employee count when making the determination of a tipped employee and applying the credit.
The FLSA also permits employees to “pool” or share tips with other eligible employees, although it doesn’t impose a limit on the amount or percentage of the contribution of each employee in a valid tip pool.
State law may differ from the federal FLSA standards. Review what tip laws apply in Missouri.
When Were the Tip Laws Last Updated in Missouri?
The tip laws were updated in Missouri in September of 2021.
Does Missouri Have Tip Laws That Differ from Federal Tip Laws?
Yes, Missouri has tip laws that differ from federal laws. Employers are permitted to count tips as part of an employee’s wage, but the credit cannot be more than 50% of the minimum hourly rate. Missouri also has a higher statewide minimum wage than the federal rate, so employers must adhere to the current rate.
Who Holds the Ownership of Tips in Missouri?
Under federal law, any gratuities paid to employees are their property. Employers are not permitted to require employees to hand in their tips, although they are allowed to count the tip toward the hourly rate.
What are the Rules for Distribution of Credit Card Processing Tips in Missouri?
Federal law states that all tips paid by credit card must be issued to employees no later than the next regular payday, even if the employer is awaiting reimbursement from the financial provider.
What are the Tip Pooling Rules in Missouri?
Employers may establish mandatory tip pools, but the tips must be fully distributed between service employees.
Who Can and Can’t Participate in Tip Pools in Missouri?
Only tipped employees are allowed to participate when the employer claims the tip credit. If an employee receives the full minimum wage, the pool may be shared with employees who don’t receive their own tips, like cooks or dishwashers. Supervisors, managers, and owners may never participate.
Is there a Difference Between Tips and Service Charges in Missouri?
Yes, a mandatory service charge is not considered a tip. Therefore, it would belong to the employer.
To be considered a tip instead of a service charge, a customer must give money voluntarily in an amount of their own choosing. The customer must also be able to determine who receives it, and it can’t be set by employer policy.
Can Employers Deduct Credit Card Fees from Tips in Missouri?
There is no law in Missouri addressing the deduction of credit card fees from tips. Legally, an employer may do so.
Do Tips Count Toward the Minimum Wage in Missouri?
Yes, the tip credit can count toward up to half of the current statewide minimum wage.
Do Tips Factor Into Regular Rate Calculations for Overtime Pay in Missouri?
No, tips don’t factor into rate calculations for overtime pay. Any eligible employee working over 40 hours in a week should receive overtime pay (1.5 times their normal hourly wage), and the employer can’t include the tip credit in that calculation.
Are There Cities and Municipalities in Missouri That Have Their Own Tip and Service Charge Rules That Differ from Statewide Laws?
No, there are currently no cities or municipalities with differing tip or service charge rules.
What Are the Record-Keeping Requirements for Employers Regarding Tips in Missouri?
Employers must keep detailed records of all tips reported by employees, including amounts and dates of service. If tip pooling is in effect, the record should also include the arrangements and the distribution of tips to eligible staff members.
What Options Do Employees Have for Remuneration if Their Tips are Withheld in Missouri?
An employee may take legal action against an employer who violates state tip laws.
What are the Penalties for Employers for Not Complying with Missouri Tip Laws?
Violating Missouri tip laws can subject an employer to a fine of up to $1,162 per instance. Employees may also be permitted to recover the unpaid wages in damages.
Related
Montana Tip Laws and Requirements
Montana's tip laws, updated in 2021, differ from federal FLSA regulations by prohibiting employers from using a tip credit and requiring payment of the full state minimum wage—which is higher than the federal rate—to tipped employees, who retain ownership of their gratuities.
North Dakota Minimum Wage Laws - WorkforceHub
North Dakota's minimum wage laws, last updated in 2009 to match the federal rate of $7.25 per hour, have no state-specific variations, industry-specific rates, or city-level differences, and any future changes depend solely on federal adjustments or new state legislation.
South Carolina Tip Laws and Requirements
South Carolina adheres to federal Fair Labor Standards Act (FLSA) tip laws, which regulate tipped employees' wages, allow employers to take a tip credit against minimum wage only for hours worked in tipped occupations, mandate a minimum cash wage of $2.13 per hour for tipped workers, permit tip pooling among eligible employees without limits on contributions, and recognize that tips are the property of employees, with the state's tip laws last updated in September 2021 and no deviations from federal standards.
Wyoming Minimum Wage Laws - WorkforceHub
Wyoming's minimum wage laws, last updated in 2014, set a state minimum wage of $5.15 per hour—one of the lowest in the U.S.—but most employers must pay the federal minimum wage of $7.25 per hour due to federal law, with no scheduled state updates, automatic increases, industry-specific rates, or local variations allowed.
Tennessee Minimum Wage Laws - WorkforceHub
Tennessee does not have its own minimum wage laws and strictly follows the federal minimum wage of $7.25 per hour set in 2009, with no state-specific updates, industry variations, local adjustments, or automatic annual increases, meaning all wage changes depend solely on federal legislation.
South Carolina Minimum Wage Laws - WorkforceHub
South Carolina currently follows the federal minimum wage of $7.25 per hour, last updated in 2009, with no state-specific or industry-specific minimum wage laws, but proposed legislation (Bill 3226) aims to establish a state minimum wage starting at $8.75 in 2026 and increasing annually to $10.10 by 2028, thereafter adjusting based on the Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region.