Hiring Employees in Missouri

Classifying Your Workers Correctly

Your company must decide whether each Missouri hire is an employee or an independent contractor using federal IRS guidance and state law. The IRS looks at behavioral control, financial control, and the overall relationship, while Missouri follows similar factors when reviewing disputes. If you misclassify workers, you can face back wages, unpaid overtime, tax assessments, interest, and civil penalties, and you may owe retroactive unemployment and workers’ compensation premiums.

You should document why you treated someone as a contractor, keep written agreements aligned with actual working conditions, and periodically review roles as they evolve. To understand the risks and how to avoid them, you can also review resources such as https://www.playroll.com/blog/employee-misclassification-guide and consult Missouri employment counsel when in doubt.

Verify Employee Work Eligibility

For every employee you hire in Missouri, you must complete federal Form I‑9 within 3 business days of the start date to verify identity and work authorization. You must physically examine original documents from the Lists of Acceptable Documents, or follow the current federal rules for any authorized remote inspection process. Missouri does not mandate E‑Verify statewide, but certain public employers and contractors may be required to use it under contract or funding terms.

You must keep I‑9s for the longer of 3 years after the hire date or 1 year after termination, and store them separately from general personnel files so you can produce them quickly in an audit. Make sure you apply the same verification process to all new hires in Missouri to avoid discrimination claims and maintain consistent compliance.

Create an Employee Onboarding Process

When you onboard employees in Missouri, you should issue a clear written offer letter outlining pay rate, pay schedule, exempt or nonexempt status, and basic benefits. Collect federal Form W‑4, any applicable Missouri state withholding form, direct deposit authorization if used, and signed acknowledgments for your employee handbook, at‑will status, and key policies such as anti‑harassment and timekeeping.

Your company must also provide any required safety or wage notices, and report each new hire to the Missouri Department of Social Services within 20 days. Building a consistent onboarding checklist helps you control hiring costs and gives you better visibility into the total cost of employing each Missouri worker.

Pay Frequency & Methods

Missouri law generally requires you to pay employees at least semimonthly, and no less than once a month, with regular, posted paydays. If you terminate an employee, you must pay all earned wages by the next regular payday, and failing to pay on time can expose your company to wage claims, attorney fees, and potential penalty wages.

Payment Methods (How You Can Pay)

You can choose from several payment methods in Missouri, but you must always ensure employees receive full wages on time and a clear wage statement each pay period.

• Payroll Check: You may pay by check drawn on a Missouri bank, and you must ensure employees can cash it at full value without fees you impose.
• Cash: You may pay wages in cash, but you must provide a written pay stub showing hours, rates, gross pay, and all deductions each pay period.
• Direct Deposit (EFT): You can offer direct deposit as a convenient option, but participation must be voluntary and you must obtain written employee consent.
• Paycards: You may use paycards if employees can access their full wages at least once per pay period without fees and you disclose terms clearly in advance.
• Outsourced Payroll: You can outsource payroll to a third‑party provider, but your company remains legally responsible for accurate wage payments and tax filings.

When choosing methods, consider employee access to banking, language needs, and how easily you can correct errors or provide replacement payments if something goes wrong.

When you hire employees in Missouri, you must withhold and remit federal and state payroll taxes and pay certain employer contributions. You will need separate registrations for Missouri income tax withholding and state unemployment insurance before you run your first payroll.

Employer Tax Contributions

Your company is responsible for federal Social Security and Medicare contributions, federal unemployment tax, and Missouri unemployment insurance, along with any local obligations that may apply. You must register with the Missouri Department of Revenue for withholding and the Missouri Division of Employment Security for unemployment, then file returns and pay on the required schedules.

Employee Payroll Tax Contributions

You must withhold employees’ share of federal and Missouri taxes from each paycheck and remit them on time. This includes federal income tax, the employee portions of Social Security and Medicare, and Missouri state income tax based on the employee’s W‑4 and state withholding elections.

Minimum Wage in Missouri

Most Missouri employers must pay at least the state minimum wage, which is scheduled at $12.30 per hour in 2025 and adjusts annually based on the Consumer Price Index. Tipped employees may be paid a lower cash wage if tips bring them up to at least the full state minimum, and certain small businesses and specific occupations may be exempt.

Working Hours in Missouri

Missouri does not set daily hour limits for most adult employees, but you must comply with federal Fair Labor Standards Act rules on recordkeeping and child labor. You should track all hours worked each day and week, including required training and certain travel time, to ensure you pay at least minimum wage and any overtime due.

Overtime in Missouri

Missouri follows federal overtime rules, so nonexempt employees must receive at least 1.5 times their regular rate for all hours worked over 40 in a workweek. You should clearly define your workweek in writing, classify exempt roles carefully, and require preapproval for overtime while still paying for all overtime actually worked.

In Missouri, your benefits strategy is shaped mainly by federal law, including the Affordable Care Act, which requires applicable large employers with 50 or more full‑time employees to offer affordable health coverage or face penalties. Beyond legal minimums, offering competitive health insurance, retirement plans, and paid leave can help your company attract and retain talent in a tight labor market.

Mandatory Leave Policies in Missouri

Paid Time Off in Missouri

Missouri law does not require private employers to provide paid vacation or general PTO, so you can design your own policy as long as you apply it consistently and honor written promises. You should clearly state how PTO accrues, whether unused time carries over, and whether any accrued but unused PTO is paid out at termination according to your policy or contract.

Well‑structured PTO policies can help your company compete for talent, especially in professional and tech roles, and you should track accruals carefully to avoid wage disputes. Make sure managers understand approval rules so PTO is granted fairly and in line with business needs.

Maternity & Paternity Leave in Missouri

Missouri does not have a separate state parental leave program, so eligible employees rely primarily on federal FMLA for up to 12 weeks of unpaid, job‑protected leave for birth, adoption, or foster placement. To qualify, your company must have at least 50 employees within 75 miles, and the employee must meet tenure and hours‑worked thresholds.

Your company can choose to offer paid parental leave or short‑term disability benefits to cover part of an employee’s income during maternity or paternity leave. Whatever you decide, put the policy in writing and coordinate it with FMLA, PTO, and any disability coverage so employees understand how their time and pay will work.

Sick Leave in Missouri

There is no statewide requirement for private employers in Missouri to provide paid sick leave, but you must follow your own written policy and any obligations under federal laws such as the Americans with Disabilities Act. Many employers bundle sick time into a general PTO bank or offer a separate sick leave allotment to reduce presenteeism and protect workplace health.

If you offer sick leave, define acceptable uses, documentation requirements, and whether unused sick time carries over or is forfeited at year‑end. Be careful not to discipline employees for protected absences related to serious health conditions covered by FMLA or disability laws.

Military Leave in Missouri

Employees in Missouri who serve in the National Guard or U.S. armed forces are protected by federal USERRA and state law, which require you to grant unpaid leave for military service and training. You must reinstate eligible employees to the same or a comparable position with the same seniority, status, and benefits when they return from service.

Your company cannot discriminate against employees because of their military obligations, and you must continue certain benefits, such as the right to participate in retirement plans, as if the employee had not taken leave. Consider documenting your military leave procedures so managers respond consistently to orders and training requests.

Jury Duty in Missouri

Missouri law prohibits you from disciplining, threatening, or coercing an employee because they are called for or serve on jury duty. While the state does not generally require private employers to pay employees for time spent on jury service, you must allow the time off and cannot require them to use vacation or sick time unless your policy clearly states so and complies with law.

You may request proof of jury service, such as a summons or attendance slip, and you should adjust schedules as needed so employees can fulfill their civic duty. Make sure supervisors understand that retaliating against an employee for serving on a jury can lead to legal claims and penalties.

Voting Leave in Missouri

In Missouri, most employees are entitled to up to 3 hours off work to vote when the polls are open, and this time must be paid if the employee requests it in advance and does not already have 3 consecutive nonworking hours while the polls are open. You may choose the specific hours the employee is absent, typically at the beginning or end of the shift, to minimize disruption.

You cannot discipline or deduct pay from an employee who properly uses voting leave under Missouri law. To avoid confusion on election days, communicate your voting leave procedures ahead of time and train managers on approval and scheduling.

Bereavement Leave in Missouri

Missouri does not mandate bereavement leave for private‑sector employees, so whether leave is offered, paid or unpaid, and for how long is up to your company’s policy. Many employers provide several days of paid leave for the death of an immediate family member and may allow additional unpaid time for travel or arrangements.

Clearly defining who qualifies as “family,” how much time is available, and what documentation you may request helps ensure consistent and compassionate treatment. A thoughtful bereavement policy can support employee well‑being and reduce turnover during difficult times.

Termination Process

Missouri is an at‑will employment state, so you can generally terminate employment at any time for any lawful reason, but you must avoid discrimination, retaliation, and breach of contract. Document performance issues, follow your progressive discipline policy if you have one, and provide a final wage statement showing all hours, wages, and deductions.

Notice Period

Missouri law does not require you to give advance notice of termination or for employees to provide notice before resigning, unless a contract or collective bargaining agreement says otherwise. However, giving reasonable notice and conducting exit interviews can reduce disputes and help you recover company property and confidential information.

Severance

Severance pay is not required under Missouri law, but you may offer it voluntarily in exchange for a signed release of claims, especially for layoffs or higher‑risk separations. If you adopt a severance plan, apply it consistently and ensure any release complies with federal requirements for age discrimination waivers and other protected rights.