3109H.02A HOUSECOMMITTEEBILLNO.1 ANACT Torepealsections290.500,290.502,290.528,and 290.600,RSMo,andtoenactinlieuthereoffournew sectionsrelatingtoemployeecompensation. BEITENACTEDBYTHEGENERALASSEMBLYOFTHESTATEOFMISSOURI,AS FOLLOWS: SectionA.Sections290.500,290.502,290.528,and290.600, 2 RSMo,arerepealedandfournewsectionsenactedinlieuthereof, 3 tobeknownassections290.500,290.502,290.528,and290.600,to 4 readasfollows: 290.500.Asusedinsections290.500to290.530,the 2 followingwordsandphrasesmean: 3 (1)"Agriculture",farmingandallitsbranchesincluding, 4 butnotlimitedto,thecultivationandtillageofthesoil, 5 dairying,theproduction,cultivation,growingandharvestingof 6 anyagriculturalcommodities,theraisingoflivestock,fishand 7 othermarinelife,bees,fur-bearinganimalsorpoultryandany 8 practicesperformedbyafarmeroronafarmasanincidenttoorin 9 conjunctionwithfarmingoperations,includingpreparationfor 10 market,deliverytostorageortomarketortocarriersfor 11 transportationtomarket; 12 (2)"Director",thedirectorofthedepartmentoflaborand 13 industrialrelationsorhisauthorizedrepresentative; 14 (3)"Employee",anyindividualemployedbyanemployer, 15 exceptthattheterm"employee"shallnotinclude: 16 (a)Anyindividualemployedinabonafideexecutive, 1 17 administrative, orprofessionalcapacity; 18 (b)Anyindividualengagedintheactivitiesofan 19 educational,charitable,religious,ornonprofitorganization 20 wheretheemployer-employee relationshipdoesnot,infact,exist 21 orwheretheservicesrenderedtotheorganizationareona 22 voluntarybasis; 23 (c)Anyindividualstandinginlocoparentistofoster 24 childrenintheircare; 25 (d)Anyindividualemployedforlessthanfourmonthsinany 26 yearinaresidentordaycampforchildrenoryouth,orany 27 individualemployedbyaneducationalconferencecenteroperated 28 byaneducational,charitableornot-for-profitorganization; 29 (e)Anyindividualengagedintheactivitiesofan 30 educationalorganizationwhereemploymentbytheorganizationis 31 inlieuoftherequirementthattheindividualpaythecostof 32 tuition,housingorothereducationalfeesoftheorganizationor 33 whereearningsoftheindividualemployedbytheorganizationare 34 creditedtowardthepaymentofthecostoftuition,housingor 35 othereducationalfeesoftheorganization; 36 (f)Anyindividualemployedonoraboutaprivateresidence 37 onanoccasionalbasisforsixhoursorlessoneachoccasion; 38 (g)Anyhandicappedpersonemployedinashelteredworkshop, 39 certifiedbythedepartmentofelementaryandsecondaryeducation; 40 (h)Anypersonemployedonacasualbasistoprovidebaby- 41 sittingservices; 42 (i)Anyindividualemployedbyanemployersubjecttothe 43 provisionsofpartAofsubtitleIVoftitle49,UnitedStates 2 44 Code,49U.S.C.§§10101etseq.; 45 (j)Anyindividualemployedonacasualorintermittentbasis 46 asagolfcaddy,newsboy,orinasimilaroccupation; 47 (k)Anyindividualwhoseearningsarederivedinwholeorin 48 partfromsalescommissionsandwhosehoursandplacesof 49 employmentarenotsubstantiallycontrolledbytheemployer; 50 (l)[Anyindividualwhoisemployedinanygovernment 51 positiondefinedin29U.S.C.§§203(e)(2)(C)(i)-(ii); 52 (m)] Anyindividualemployedbyaretailorservicebusiness 53 whoseannualgrossvolumesalesmadeorbusinessdoneislessthan 54 fivehundredthousanddollars; 55 [(n)] (m)Anyindividualwhoisanoffender,asdefinedin 56 section217.010,whoisincarceratedinanycorrectionalfacility 57 operatedbythedepartmentofcorrections,includingoffenderswho 58 providelabororservicesonthegroundsofsuchcorrectional 59 facilitypursuanttosection217.550; 60 [(o)] (n)Anyindividualdescribedbytheprovisionsof 61 section29U.S.C.213(a)(8); 62 (4)"Employer",anypersonactingdirectlyorindirectlyin 63 theinterestofanemployerinrelationtoanemployee; 64 (5)"Learnerandapprentice",anyindividualunder20years 65 ofagewhohasnotcompletedtherequiredtrainingforaparticular 66 job.Innoeventshalltheindividualbedeemedalearneror 67 apprenticeintheoccupationafterthreemonthsoftrainingexcept 68 wherethedirectorfinds,afterinvestigation,thatforthe 69 particularoccupationaminimumofproficiencycannotbeacquired 70 inthreemonths.Innocaseshallapersonbedeclaredtobea 3 71 learnerorapprenticeaftersixmonthsoftrainingforaparticular 72 employerorjob.Employeesofanamusementorrecreationbusiness 73 thatmeetsthecriteriasetoutin29U.S.C.§213(a)(3)maybe 74 deemedalearnerorapprenticeforninetyworkingdays.No 75 individualshallbedeemedalearnerorapprenticesolelyforthe 76 purposeofevadingtheprovisionsofsections290.500to290.530; 77 (6)"Occupation",anyoccupation,service,trade,business, 78 industry,orbranchorgroupofindustriesoremploymentorclass 79 ofemploymentinwhichindividualsaregainfullyemployed; 80 (7)"Wage",compensationduetoanemployeebyreasonofhis 81 employment,payableinlegaltenderoftheUnitedStatesorchecks 82 onbanksconvertibleintocashondemandatfullfacevalue; 83 (8)"Person",anyindividual,partnership,association, 84 corporation,business,businesstrust,legalrepresentative, or 85 anyorganizedgroupofpersons; 86 (9)"Man-day",anydayduringwhichanemployeeperformsany 87 agriculturallaborfornotlessthanonehour. 290.502.1.Exceptasmaybeotherwiseprovidedpursuantto 2 sections290.500to290.530,effectiveJanuary1,2007,every 3 employershallpaytoeachemployeewagesattherateof$6.50per 4 hour,orwagesatthesamerateorratessetundertheprovisions 5 offederallawastheprevailingfederalminimumwageapplicableto 6 thosecoveredjobsininterstatecommerce,whicheverrateperhour 7 ishigher. 8 2.Theminimumwageshallbeincreasedordecreasedon 9 January1,2008,andonJanuary1ofsuccessiveyears,bythe 10 increaseordecreaseinthecostofliving.OnSeptember30,2007, 4 11 andoneachSeptember30ofeachsuccessiveyear,thedirector 12 shallmeasuretheincreaseordecreaseinthecostoflivingbythe 13 percentageincreaseordecreaseasoftheprecedingJulyoverthe 14 levelasofJulyoftheimmediatelyprecedingyearoftheConsumer 15 PriceIndexforUrbanWageEarnersandClericalWorkers(CPI-W)or 16 successorindexaspublishedbytheU.S.DepartmentofLabororits 17 successoragency,withtheamountoftheminimumwageincreaseor 18 decreaseroundedtothenearestfivecents. 19 3.Exceptasmaybeotherwiseprovidedpursuanttosections 20 290.500to290.530,andnotwithstanding subsection1ofthis 21 section,effectiveJanuary1,2025,everyemployershallpayto 22 eachemployeewagesattherateofnotlessthan$13.75perhour, 23 orwagesatthesamerateorratessetundertheprovisionsof 24 federallawastheprevailingfederalminimumwageapplicableto 25 thosecoveredjobsininterstatecommerce,whicheverrateperhour 26 ishigher.Thereafter,theminimumwageestablishedbythis 27 subsectionshallbeincreasedby$1.25perhour,to$15.00per 28 hour,effectiveJanuary1,2026.Thereafter,theminimumwage 29 establishedbythissubsectionshallbeincreasedordecreasedon 30 January1,2027,andonJanuary1ofsuccessiveyears,perthe 31 methodsetforthinsubsection2ofthissection.Ifatanytime 32 thefederalminimumwagerateisaboveoristhereafterincreased 33 abovetheminimumwagethenineffectunderthissubsection,the 34 minimumwagerequiredbythissubsectionshallcontinuetobe 35 increasedpursuanttothissubsection,butthehigherfederalrate 36 shallimmediatelybecometheminimumwagerequiredbythis 37 subsectionandshallbeincreasedordecreasedperthemethodset 5 38 forthinsubsection2forsolongasitremainshigherthanthe 39 stateminimumwagerequiredandincreasedpursuanttothis 40 subsection. 41 4.Forpurposesofthissection,theterm"publicemployer" 42 meansanemployerthatisthestateorapoliticalsubdivisionof 43 thestate,includingadepartment,agency,officer,bureau, 44 division,board,commission,orinstrumentality ofthestate,ora 45 city,county,town,village,schooldistrict,orotherpolitical 46 subdivisionofthestate.[Subsection 3ofthissection] Beginning 47 onAugust28,2025,theprovisionsofthissectionshall[not] 48 applytoapublicemployerwithrespecttoitsemployees. [Any 49 publicemployerthatissubjecttosubsections1and2ofthis 50 sectionshallcontinuetobesubjecttothosesubsections.] 290.528.1.Asusedinthissection,thefollowingterms 2 shallmean: 3 (1)"Employee",anindividualemployedinthisstatebyan 4 employer; 5 (2)"Employer",anyindividual,soleproprietorship, 6 partnership,limitedliabilitycompany,corporation,oranyother 7 entitythatislegallydoingbusinessinthisstate[; exceptthat, 8 theterm"employer"shallnotincludeanypublicemployer,as 9 definedinsection285.525]; 10 (3)"Employmentbenefits",anythingofvaluethatan 11 employeemayreceivefromanemployerinadditiontowagesand 12 salary.Thetermincludes,butisnotlimitedto,health, 13 disability,retirement,profit-sharing, anddeathbenefits;group 14 accidentaldeathanddismembermentbenefits;paidorunpaiddays 6 15 offfromworkforholidays,sickleave,vacation,andpersonal 16 necessity;andtermsofemployment,attendance,orleavepolicies; 17 (4)"Politicalsubdivision",anymunicipality,special 18 district,localgovernmentalbody,county,city,town,orvillage. 19 2.Notwithstanding anyotherprovisionsoflawtothe 20 contrary,nopoliticalsubdivisionshallestablish,mandate,or 21 otherwiserequireanemployertoprovidetoanemployee: 22 (1)Aminimumorlivingwagerate;or 23 (2)Employmentbenefits; 24 25 thatexceedstatelaws,rules,orregulations. Sections290.500to 26 290.530shallpreemptandnullifyallpoliticalsubdivision 27 ordinances,rules,andregulationscurrentlyineffectorlater 28 enactedrelatingtotheestablishmentorenforcementofaminimum 29 orlivingwageortheprovisionofemploymentbenefitsthatexceed 30 statelaws,rules,orregulations. 290.600.Asusedinsections290.600through290.642: 2 (1)"Department",departmentoflaborandindustrial 3 relations; 4 (2)"Director",directorofthedepartmentoflaborand 5 industrialrelations; 6 (3)"Domesticviolence",assuchtermisdefinedinsection 7 455.010; 8 (4)"Earnedpaidsicktime",timethatiscompensatedatthe 9 samehourlyrateandwiththesamebenefits,includinghealthcare 10 benefits,astheemployeenormallyearnsduringhoursworkedandis 11 providedbyanemployertoanemployeeforthepurposesdescribed 7 12 insection290.606,butinnocaseshallthishourlyamountbeless 13 thanthatprovidedundersection290.502; 14 (5)"Employee",anyindividualemployedinthisstatebyan 15 employer,butdoesnotinclude: 16 (a)Anyindividualengagedintheactivitiesofan 17 educational,charitable,religious,ornonprofitorganization 18 wheretheemployer-employee relationshipdoesnot,infact,exist 19 orwheretheservicesrenderedtotheorganizationareona 20 voluntarybasis; 21 (b)Anyindividualstandinginlocoparentistofoster 22 childrenintheircare; 23 (c)Anyindividualemployedforlessthanfourmonthsinany 24 yearinaresidentordaycampforchildrenoryouth,orany 25 individualemployedbyaneducationalconferencecenteroperated 26 byaneducational,charitableornot-for-profitorganization; 27 (d)Anyindividualengagedintheactivitiesofan 28 educationalorganizationwhereemploymentbytheorganizationis 29 inlieuoftherequirementthattheindividualpaythecostof 30 tuition,housingorothereducationalfeesoftheorganizationor 31 whereearningsoftheindividualemployedbytheorganizationare 32 creditedtowardthepaymentofthecostoftuition,housingor 33 othereducationalfeesoftheorganization; 34 (e)Anyindividualemployedonoraboutaprivateresidence 35 onanoccasionalbasisforsixhoursorlessoneachoccasion; 36 (f)Anyindividualemployedonacasualbasistoprovide 37 baby-sittingservices; 38 (g)Anyindividualemployedbyanemployersubjecttothe 8 39 provisionsofPartAofSubtitleIVofTitle49,UnitedStates 40 Code,49U.S.C.§§10101etseq.; 41 (h)Anyindividualemployedonacasualorintermittentbasis 42 asagolfcaddy,newsboy,orinasimilaroccupation; 43 (i)[Anyindividualwhoisemployedinanygovernment 44 positiondefinedin29U.S.C.§§203(e)(2)(C)(i)-(ii); 45 (j)] Anyindividualemployedbyaretailorservicebusiness 46 whoseannualgrossvolumesalesmadeorbusinessdoneislessthan 47 fivehundredthousanddollars; 48 [(k)] (j)Anyindividualwhoisanoffender,asdefinedin 49 section217.010,whoisincarceratedinanycorrectionalfacility 50 operatedbythedepartmentofcorrections,includingoffenderswho 51 providelabororservicesonthegroundsofsuchcorrectional 52 facilitypursuanttosection217.550;or, 53 [(l)] (k)Anyindividualdescribedbytheprovisionsof 54 section29U.S.C.213(a)(8); 55 (6)"Employer",anypersonactingdirectlyorindirectlyin 56 theinterestofanemployerinrelationtoanemployee[; provided, 57 however,thatforthepurposesofsections290.600through290.642 58 "employer"doesnotincludetheUnitedStatesgovernment,the 59 state,orapoliticalsubdivisionofthestate,includinga 60 department,agency,officer,bureau,division,board,commission, 61 orinstrumentality ofthestate,oracity,county,town,village, 62 schooldistrict,publichighereducationinstitution,orother 63 politicalsubdivisionofthestate]; 64 (7)"Familymember",anyofthefollowingindividuals: 65 (a)Regardlessofage,abiological,adoptedorfosterchild, 9 66 stepchildorlegalward,achildofadomesticpartner,achildto 67 whomtheemployeestandsinlocoparentis,oranindividualtowhom 68 theemployeestoodinlocoparentiswhentheindividualwasa 69 minor; 70 (b)Abiological,foster,stepparentoradoptiveparentor 71 legalguardianofanemployeeoranemployee'sspouseordomestic 72 partneroranindividualwhostoodinlocoparentiswhenthe 73 employeeoremployee'sspouseordomesticpartnerwasaminor 74 child; 75 (c)Anindividualtowhomtheemployeeislegallymarried 76 underthelawsofanystate,oradomesticpartnerwhois 77 registeredassuchunderthelawsofanystateorpolitical 78 subdivision,oranindividualwithwhomtheemployeeisina 79 continuingsocialrelationshipofaromanticorintimatenature; 80 (d)Agrandparent,grandchild,orsibling(whetherofa 81 biological,foster,adoptiveorsteprelationship)oftheemployee 82 ortheemployee'sspouseordomesticpartner;or 83 (e)Apersonforwhomtheemployeeisresponsiblefor 84 providingorarranginghealthorsafety-relatedcare,including 85 butnotlimitedtohelpingthatindividualobtaindiagnostic, 86 preventative,routine,ortherapeutichealthtreatmentorensuring 87 thepersonissafefollowingdomesticviolence,sexualassault,or 88 stalking; 89 (8)"Healthcareprofessional",anyindividuallicensed 90 underfederaloranystatelawtoprovidemedicaloremergency 91 services,includingbutnotlimitedtodoctors,nurses,certified 92 nursemidwives,mentalhealthprofessionals,andemergencyroom 10 93 personnel; 94 (9)"Person",anyindividual,partnership,association, 95 corporation,business,businesstrust,legalrepresentative, or 96 anyorganizedgroupofpersons; 97 (10)"Retaliatorypersonnelaction",denialofanyright 98 guaranteedundersections290.600through290.642,oranythreat, 99 discharge,suspension,demotion,reductionofhours,oranyother 100 adverseactionagainstanemployeefortheexerciseofanyright 101 guaranteedherein."Retaliatorypersonnelaction"shallalso 102 includeinterferencewithorpunishmentforinanymanner 103 participatinginorassistinganinvestigation,proceeding,or 104 hearingundersections290.600through290.642; 105 (11)"Samehourlyrate",meansthefollowing: 106 (a)Foremployeespaidonthebasisofasinglehourlyrate, 107 thesamehourlyrateshallbetheemployee'sregularhourlyrate; 108 (b)Foremployeeswhoarepaidmultiplehourlyratesofpay 109 fromthesameemployer,thesamehourlyrateshallbeeither: 110 a.Thewagestheemployeewouldhavebeenpaidforthehours 111 absentduringuseofearnedpaidsicktimeiftheemployeehad 112 worked;or, 113 b.Theweightedaverageofallhourlyratesofpayduringthe 114 previouspayperiod. 115 116 Whatevermethodtheemployeruses,theemployermustusea 117 consistentmethodforeachemployeethroughoutayear; 118 (c)Foremployeeswhoarepaidasalary,thesamehourlyrate 119 shallbedeterminedbydividingthewagestheemployeeearnsinthe 11 120 previouspayperiodbythetotalnumberofhoursworkedduringthe 121 previouspayperiod.Fordeterminingtotalnumberofhoursworked 122 duringthepreviouspayperiod,employeeswhoareexemptfrom 123 overtimerequirementsunder29U.S.C.§213(a)(1),theFairLabor 124 StandardsAct,shallbeassumedtoworkfortyhoursineachwork 125 weekunlesstheirnormalworkweekislessthanfortyhours,in 126 whichcaseearnedpaidsicktimeshallaccrueandthesamehourly 127 rateshallbecalculatedbasedontheemployee'snormalworkweek. 128 Regardlessofthebasisused,thesamehourlyrateshallnotbe 129 lessthantheeffectiveminimumwagespecifiedinsection290.502; 130 (d)Foremployeespaidonapiecerateorafee-for-service 131 basis,thesamehourlyrateshallbeareasonablecalculationof 132 thewagesorfeestheemployeewouldhavereceivedforthepiece 133 work,service,orpartthereof,iftheemployeehadworked. 134 Regardlessofthebasisused,thesamehourlyrateshallnotbe 135 lessthantheeffectiveminimumwagespecifiedinsection290.502; 136 (e)Foremployeeswhoarepaidonacommissionbasis(whether 137 basewagepluscommissionorcommissiononly),thesamehourlyrate 138 shallbethegreaterofthebasewageortheeffectiveminimumwage 139 specifiedinsection290.502; 140 (f)Foremployeeswhoreceiveandretaincompensationinthe 141 formofgratuitiesinadditiontowages,thesamehourlyrateshall 142 bethegreateroftheemployee'sregularhourlyrateoronehundred 143 percentoftheeffectiveminimumwagespecifiedinsection290.502 144 withoutdeductionofanytipsasacredit; 145 (12)"Sexualassault",assuchtermisdefinedinsection 146 455.010; 12 147 (13)"Stalking",assuchtermisdefinedinsection455.010; 148 (14)"Year",aregularandconsecutivetwelve-monthperiod 149 asdeterminedbytheemployer;exceptthatforthepurposesof 150 section290.615andsection290.627,"year"shallmeanacalendar 151 year. 13