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Bill Summary · HB 2554

Overview

HB 2554 (2026) from Missouri modifies the exemption from minimum wage for certain employees by changing the threshold that determines which retail or service businesses qualify for the exemption. The bill repeals the current section and enacts a revised definition of “employee” for purposes of the minimum wage statute.

Purpose and intent

  • To adjust which workers are exempt from Missouri’s minimum wage requirements in retail or service businesses.
  • Specifically, to raise the annual gross sales threshold that permits an employer to qualify for the exemption, and to index that threshold to inflation starting in 2028.

Key provisions

  • Definitions: Repeals and replaces Section 290.500 to redefine terms related to the minimum wage law, including “employee,” “employer,” and related categories.
  • Exemption threshold for retail/service businesses:
    • The current exemption applies to employees of retail or service businesses with annual gross sales less than $500,000.
    • The bill increases this threshold to $11,100,000.
    • Beginning in the 2028 calendar year, the threshold for exemption will be adjusted annually for inflation.
    • The inflation adjustment uses the Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics, with the adjustment determined by the Department of Labor and Industrial Relations (DLIR). The Department will publish the new threshold annually starting October 1, 2027, with the new amount taking effect January 1 of each year.
  • Inflation linkage: The bill ties future exemptions to changes in inflation, ensuring the threshold remains aligned with economic conditions.

Affected parties

  • Retail and service businesses: The primary impact is on whether certain small-to-mid-sized retailers and service providers qualify for the wage-exemption category.
  • Employees in qualifying exempt businesses: Their wage protections under the state minimum wage statute may be affected depending on whether their employer falls under the exemption after the threshold is reached or adjusted.
  • Employers: Those who operate within the defined threshold could continue to rely on the exemption; changes to the threshold could expand or reduce eligibility over time as the threshold is updated.

Procedural and timeline aspects

  • Effective timeline:
    • The inflation-adjusted threshold begins applying from the 2028 calendar year onward.
    • Annual adjustments will be published by the DLIR starting October 1, 2027, with new thresholds taking effect January 1 of each subsequent year.
  • Legislative process:
    • Referred to Emerging Issues (H) for consideration.
    • Passed the House with a read history indicating first and second readings earlier in 2026 and prefiled in late 2025.
  • Sponsor: Representative Miller (with co-sponsor Scott Miller).

Practical implications

  • The exemption threshold’s substantial increase (from $0.5 million to $11.1 million in annual gross sales) represents a significant shift in which businesses can qualify for wage exemptions.
  • Inflation-based annual adjustments will gradually modify eligibility, potentially broadening or narrowing the exemption over time depending on inflation trends.
  • Stakeholders should monitor the DLIR’s annual threshold announcements for planning wage compliance and payroll budgeting.

Compiled from official sources — confirm details with the bill’s official record.

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