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RSMo 290.512effective 07 Dec 2006

Gratuities, goods or services as part of wages, effect on minimum wage requirements

In plain English

If a worker gets tips, the boss only has to pay half the minimum wage in regular pay — but the tips plus the pay together must add up to at least the minimum wage. If tips fall short, the boss makes up the difference. If a worker gets things like free meals or housing as part of the job (and the worker has no choice about getting them), the boss can count the value of those things toward the minimum wage and pay less cash — but the cash plus the value of the goods must still equal the minimum wage.

Word-for-word law

290.512. , goods or services as part of wages, effect on minimum wage requirements. — 1. No employer of any employee who receives and retains in the form of gratuities in addition to wages is required to pay wages in excess of fifty percent of the minimum wage rate specified in sections 290.500 to 290.530, however, total compensation for such employee shall total at least the minimum wage specified in sections 290.500 to 290.530, the difference being made up by the employer.

2. If an employee receives and retains compensation in the form of goods or services as an incident of his and if he is not required to exercise any in to receive the goods or services, the employer is required to pay only the difference between the of the goods and services and the minimum wage otherwise required to be paid by sections 290.500 to 290.530. The fair market value of the goods and services shall be computed on a weekly basis. The shall provide by a method of valuing the goods and services received by any employee the wages otherwise required to be paid under the of sections 290.500 to 290.530. He shall also provide by regulation a method of determining those types of goods and services that are an the receipt of which does not require any discretion on the part of the employee.

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Source & history notes

(L. 1990 H.B. 1881 § 6, A.L. 2006 Adopted by Initiative, Proposition B, November 7, 2006)

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Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.

RSMo 290.512: Gratuities, goods or services as part of wages, effect on minimum wage requirements | KnowMo Laws