Hiring New Employees in Missouri: A Legal Guide

Hiring employees in Missouri requires compliance with both federal and state-specific employment laws, including proper classification, documentation, and tax requirements. Missouri employers must verify work eligibility, register with the state's unemployment insurance program, and adhere to specific wage and hour regulations that may differ from federal standards.

Failure to comply with Missouri's employment laws can result in significant penalties, including fines, back-pay obligations, and potential legal action from employees or state agencies. Establishing proper hiring practices from the outset helps protect your business and creates a legally sound foundation for employer-employee relationships.

Key Considerations

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Relevant Laws

Missouri Human Rights Act (MHRA)

Prohibits employment discrimination based on race, color, religion, national origin, ancestry, sex, disability, and age (40-69). Employers with 6 or more employees must comply. Relevant when creating job descriptions, during interviews, and making hiring decisions to avoid discriminatory practices.

Missouri E-Verify Requirements

Missouri requires public employers and businesses with government contracts/grants exceeding $5,000 to use E-Verify to confirm employee eligibility to work in the US. Private employers are encouraged but not required to use E-Verify unless they receive state contracts or grants.

Missouri New Hire Reporting

Employers must report all newly hired employees to the Missouri Department of Revenue within 20 days of hire. This information is used for child support enforcement and to prevent unemployment insurance fraud.

Missouri Minimum Wage Law

As of 2023, Missouri's minimum wage is $12.30 per hour. Employers must pay at least this amount unless specifically exempted. This rate is adjusted annually based on the Consumer Price Index.

Missouri Workers' Compensation Law

Employers with five or more employees (or any construction industry employers) must provide workers' compensation insurance. New employees should be informed about workers' compensation coverage and procedures for reporting workplace injuries.

Missouri Unemployment Insurance

Employers must register with the Missouri Department of Labor for unemployment insurance tax purposes. This is required within the first 10 days of becoming liable for unemployment insurance taxes.

Federal Form I-9 Requirements

Though a federal requirement, Missouri employers must complete Form I-9 for each new employee to verify identity and employment authorization within 3 business days of the employee's first day of work.

Regional Variances

Major Metropolitan Areas

St. Louis has a local minimum wage ordinance that was preempted by state law in 2017. Employers must follow the Missouri state minimum wage. Additionally, St. Louis has a 'ban the box' ordinance that prohibits employers from inquiring about criminal history on initial job applications for positions within the city limits.

Kansas City has enacted its own 'ban the box' ordinance that applies to employers with 6 or more employees, prohibiting criminal history questions on job applications. The city also has specific requirements for providing accommodations for pregnant workers that may exceed state requirements.

Columbia has a comprehensive human rights ordinance that prohibits employment discrimination based on sexual orientation and gender identity, providing broader protections than Missouri state law, which does not explicitly include these categories.

County-Specific Regulations

Jackson County has specific requirements for employee background checks that differ from other parts of the state. Employers must follow specific notification procedures when conducting background checks on potential employees.

St. Louis County has enacted its own employment discrimination ordinance that includes protections based on sexual orientation and gender identity. The county also has specific requirements for employee break times that may differ from state standards.

Special Economic Zones

Missouri has designated Enterprise Zones throughout the state where employers may qualify for special tax incentives when hiring local residents. These zones have specific reporting requirements for new hires that differ from standard state procedures.

Springfield has local ordinances affecting employment in certain industries, particularly manufacturing and healthcare. Employers in these sectors may face additional compliance requirements for new hires related to safety training and certification verification.

Suggested Compliance Checklist

Create and review job description

1 days after starting

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Missouri employment laws and does not contain discriminatory language. This will help attract qualified candidates and serve as documentation for the position requirements.

Post job opening and recruit candidates

7 days after starting

Advertise the position through appropriate channels such as job boards, company website, social media, or recruitment agencies. In Missouri, employers must ensure job postings do not discriminate based on protected characteristics including race, color, religion, national origin, sex, ancestry, age (40-70), or disability.

Prepare Employment Application Form

7 days after starting

Create or update your employment application form to collect necessary information from candidates. In Missouri, applications should avoid questions about age, race, religion, disability status, or other protected characteristics. Include authorization for reference checks and verification of employment history.

Document: Employment Application Form

Conduct interviews and select candidate

21 days after starting

Interview qualified candidates and select the best fit for the position. Missouri is an at-will employment state, but employers must still avoid discriminatory hiring practices. Document the selection process and reasons for hiring decisions to protect against potential discrimination claims.

Conduct background check

28 days after starting

Obtain written authorization from the candidate before conducting any background checks. Missouri follows the Fair Credit Reporting Act (FCRA) requirements for employment background checks. Ensure compliance with both federal and state regulations regarding criminal background checks, credit checks, and other screenings.

Prepare Background Check Authorization Form

28 days after starting

Create a form that complies with the FCRA and Missouri law, clearly explaining the background check process and obtaining the candidate's consent. The form should be separate from the employment application and include disclosures about the types of information that will be obtained.

Document: Background Check Authorization Form

Draft Employment Offer Letter

35 days after starting

Prepare a formal offer letter outlining the position, compensation, benefits, start date, and employment conditions. In Missouri, offer letters should clearly state the at-will employment relationship unless a specific contract term is intended. Include any contingencies such as background checks or drug testing.

Document: Employment Offer Letter

Prepare Employment Contract (if applicable)

35 days after starting

If offering a contract rather than at-will employment, draft a comprehensive employment contract. In Missouri, employment contracts should clearly outline terms including duration, compensation, benefits, termination conditions, and any restrictive covenants. Have legal counsel review the contract to ensure enforceability.

Document: Employment Contract

Prepare Non-Disclosure Agreement

35 days after starting

Draft a non-disclosure agreement to protect confidential company information. In Missouri, NDAs must be reasonable in scope and duration to be enforceable. The agreement should clearly define what constitutes confidential information and the employee's obligations regarding such information.

Document: Non-Disclosure Agreement

Prepare Non-Compete Agreement (if applicable)

35 days after starting

If necessary for the position, draft a non-compete agreement. In Missouri, non-compete agreements must be reasonable in geographic scope, duration, and activities restricted. They must protect legitimate business interests and not be overly restrictive. Have legal counsel review to ensure enforceability under Missouri law.

Document: Non-Compete Agreement

Verify employment eligibility

42 days after starting

Prepare to verify the new hire's eligibility to work in the United States. Federal law requires all employers to verify employment eligibility regardless of the employee's citizenship or national origin. This must be completed within 3 business days of the employee's first day of work.

Prepare Form I-9 Employment Eligibility Verification

42 days after starting

Have the Form I-9 ready for completion. The employee must complete Section 1 on their first day of work. As the employer, you must complete Section 2 within 3 business days of the employee's start date after physically examining the employee's identity and employment authorization documents.

Document: Form I-9 Employment Eligibility Verification

Prepare tax withholding forms

42 days after starting

Prepare federal and state tax withholding forms for the new employee to complete. These forms determine how much income tax to withhold from the employee's paychecks. Missouri employers must withhold state income tax in addition to federal income tax.

Prepare Form W-4 Employee's Withholding Certificate

42 days after starting

Have the federal W-4 form ready for the employee to complete. This form determines federal income tax withholding. Employees should complete a new W-4 whenever their personal or financial situation changes.

Document: Form W-4 Employee's Withholding Certificate

Prepare Missouri State Tax Withholding Form (MO W-4)

42 days after starting

Have the Missouri state withholding form (MO W-4) ready for completion. This form is specific to Missouri state income tax withholding and is required for all employees working in Missouri.

Document: State Tax Withholding Form

Prepare Direct Deposit Authorization Form

42 days after starting

Create a form for employees to authorize direct deposit of their paychecks. In Missouri, employers cannot require direct deposit as the only payment method unless certain conditions are met, so this form should be optional for the employee.

Document: Direct Deposit Authorization Form

Prepare Emergency Contact Information Form

42 days after starting

Create a form to collect emergency contact information from the new employee. This information is essential for workplace safety and emergency response procedures.

Document: Emergency Contact Information Form

Prepare Benefits Enrollment Forms

42 days after starting

Prepare forms for enrolling the new employee in company benefit programs such as health insurance, retirement plans, and other benefits. In Missouri, employers must provide clear information about available benefits and enrollment deadlines.

Document: Benefits Enrollment Forms

Update or provide Employee Handbook

42 days after starting

Ensure your employee handbook is up-to-date with current Missouri employment laws and company policies. The handbook should cover workplace policies, procedures, code of conduct, anti-discrimination policies, leave policies, and other important information. Have the employee acknowledge receipt of the handbook.

Document: Employee Handbook

Register new hire with Missouri Department of Labor

49 days after starting

Missouri employers must report all new hires to the Missouri Department of Labor and Industrial Relations within 20 days of hire. This reporting is required for child support enforcement purposes. Use the Missouri New Hire Reporting Form or report online through the Missouri New Hire Reporting Center.

Prepare New Hire Reporting Form

49 days after starting

Complete the Missouri New Hire Reporting Form with the required information including the employee's name, address, Social Security number, and date of hire, as well as the employer's name, address, and Federal Employer Identification Number (FEIN).

Document: New Hire Reporting Form

Register for unemployment insurance

49 days after starting

If this is your first employee in Missouri, register with the Missouri Department of Labor and Industrial Relations, Division of Employment Security for unemployment insurance. All employers with workers in Missouri must contribute to the state's unemployment insurance program.

Obtain workers' compensation insurance

49 days after starting

Missouri law requires employers with five or more employees to carry workers' compensation insurance. However, construction industry employers must carry coverage if they have one or more employees. Verify your requirements and obtain appropriate coverage if needed.

Display required workplace posters

49 days after starting

Missouri employers must display certain state and federal employment law posters in a conspicuous location accessible to all employees. These include posters regarding minimum wage, workplace safety, equal employment opportunity, and other employment laws.

Conduct new employee orientation

56 days after starting

Plan and conduct an orientation for the new employee to introduce them to the company, workplace policies, safety procedures, and job responsibilities. This helps ensure a smooth transition and clear understanding of expectations.

Set up payroll for the new employee

56 days after starting

Add the new employee to your payroll system. Missouri requires employers to pay employees at least semi-monthly (twice a month) and maintain payroll records for at least three years. Ensure your payroll system correctly calculates Missouri state income tax withholding.

Frequently Asked Questions

As of 2023, Missouri's minimum wage is $12.30 per hour for most employees. This rate is adjusted annually for inflation. Employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not required to pay the state minimum wage rate and may follow the federal minimum wage of $7.25 per hour.

Yes, Missouri is an at-will employment state. This means that without a contract specifying otherwise, employers can terminate employees for any reason that is not illegal (such as discrimination based on protected characteristics), and employees can leave their job at any time without reason or notice.

Required new hire paperwork in Missouri includes: federal I-9 form (employment eligibility verification), federal W-4 form (tax withholding), Missouri W-4 form (state tax withholding), new hire reporting to the Missouri Department of Social Services within 20 days of hire, workers' compensation acknowledgment, and unemployment insurance registration if you're a new employer.

Missouri does not generally require private employers to conduct background checks, with exceptions for certain industries like healthcare, childcare, and education. However, employers who do conduct background checks must comply with the federal Fair Credit Reporting Act (FCRA) and should be aware that Missouri has 'ban-the-box' regulations for public employers that restrict asking about criminal history on initial job applications.

Yes, non-compete agreements are generally enforceable in Missouri if they are reasonable in scope, time, and geographic area, and protect legitimate business interests. Missouri courts will evaluate whether the restrictions are necessary to protect the employer's business interests and not overly burdensome on the employee's ability to earn a living.

Missouri law does not require employers to provide meal or rest breaks for adult employees. If breaks are provided, short breaks (usually 20 minutes or less) must be paid. Meal periods (typically 30 minutes or more) where employees are completely relieved of duties can be unpaid. Federal law applies to breaks for nursing mothers and minors.

Missouri follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. Non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular pay rate for hours worked beyond 40 in a workweek. Missouri does not require overtime pay for work on weekends or holidays unless it exceeds the 40-hour threshold.

Missouri does not have a state law requiring private employers to provide paid sick leave. However, employers who choose to offer sick leave must follow their established policies, and employees may be entitled to unpaid leave under the federal Family and Medical Leave Act (FMLA) if eligible.

Missouri employers with six or more employees must comply with the Missouri Human Rights Act, which prohibits discrimination based on race, color, religion, national origin, ancestry, sex, disability, and age (40-69). The law also prohibits discrimination based on pregnancy and protects against sexual harassment. Federal anti-discrimination laws may also apply depending on employer size.

Most Missouri employers with five or more employees (or any construction industry employers with one or more employees) must carry workers' compensation insurance. Employers must post notice of workers' compensation coverage in the workplace, provide prompt medical treatment for work-related injuries, and report injuries to their insurance carrier and the Division of Workers' Compensation within 30 days of knowledge of the injury.

Hiring New Employees in Missouri: A Legal Guide | DocDraft