🇺🇸 MISSOURI STATE LAW – 2026 UPDATE

Missouri Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Missouri

Missouri remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Missouri is generally considered to have a moderate regulatory approach to employment matters, balancing business flexibility with worker protections. According to official state sources, Missouri has fewer state-mandated employment regulations compared to some neighboring states, with many matters deferred to federal law or employer discretion.

General Characteristics (As of December 2024):

State minimum wage (2025): $13.75/hour
State minimum wage (2026): $15.00/hour (as enacted)
Future adjustments: No automatic increases after 2026 (inflation adjustments repealed by HB 567, 2025)

Paid sick leave:

  • Required from May 1, 2025 through August 27, 2025 only
  • Repealed effective August 28, 2025 by HB 567
  • No state mandate after August 28, 2025

State income tax: Yes – progressive rates from 0% to 4.95%

Meal/rest breaks: Not mandated by state law for adult employees

Overtime rules: Generally follows federal FLSA (time-and-a-half after 40 hours/week)

Workers’ compensation: Generally required for most employers with employees

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, employee type, and individual circumstances. Laws change frequently. Consult official sources and legal counsel for guidance on specific situations.

Source: Missouri Department of Labor and Industrial Relations – https://labor.mo.gov/

Official State Agency Information

The Missouri Department of Labor and Industrial Relations administers employment laws in Missouri.

Contact Information:

  • Website: https://labor.mo.gov/
  • Main Address: 421 East Dunklin Street, P.O. Box 504, Jefferson City, MO 65102
  • Phone: 573-751-4091
  • Languages: English (primary)

Note: This agency can provide official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Divisions of the Department

The Missouri Department of Labor and Industrial Relations consists of several divisions that administer specific programs:

Division of Employment Security

  • Phone: 573-751-1995 (employers) | 800-320-2519 (claimants)
  • Email: esuicallback@labor.mo.gov
  • Function: Administers unemployment insurance program

Division of Workers’ Compensation

  • Phone: 573-751-4231 | 800-775-2667 (information line)
  • Email: workerscomp@labor.mo.gov
  • Function: Administers workers’ compensation law

Division of Labor Standards

Missouri Commission on Human Rights

  • Phone: 573-751-3325 | 877-781-4236 (toll-free)
  • Email: mchrintake@labor.mo.gov
  • Function: Investigates discrimination complaints

Source: Missouri Department of Labor and Industrial Relations – https://labor.mo.gov/contact-labor

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation.

1. Missouri Minimum Wage Law

Statutory Citation: RSMo Chapter 290.500-290.530
Official Source: https://revisor.mo.gov/main/Home.aspx

General Provisions (as stated in the statute): According to Missouri law, the minimum wage provisions generally:

  • Apply to private employers with annual gross income of $500,000 or more
  • Establish minimum hourly wage rates for non-exempt employees
  • Include provisions for tipped employees
  • Provide for enforcement mechanisms

Recent Legislative Changes:

  • Proposition A (November 2024): Approved by voters, increased minimum wage to $13.75 (2025) and $15.00 (2026)
  • HB 567 (July 2025): Repealed automatic inflation adjustments beginning 2027; repealed paid sick leave mandate

Application to Remote Work: Minimum wage provisions typically apply based on where work is physically performed. Specific applicability depends on multiple factors. Consult Missouri Department of Labor or legal counsel for guidance.

Source: Missouri Department of Labor – https://labor.mo.gov/dls/minimum-wage

2. Missouri Workers’ Compensation Law

Statutory Citation: RSMo Chapter 287
Effective Date: Various provisions over time Official Source: https://revisor.mo.gov/main/OneChapter.aspx?chapter=287

General Overview: According to Missouri statutes, workers’ compensation law generally:

  • Requires most employers to maintain workers’ compensation coverage
  • Defines compensable injuries as those “arising out of and in the course of employment”
  • Establishes benefits for medical treatment, temporary disability, permanent disability, and death
  • Creates an administrative system for resolving disputes

Coverage Requirements: The statute generally requires coverage for employers who have:

  • Five or more employees (general rule)
  • One or more employees in construction trades
  • Certain other specified employment arrangements

Note: Actual coverage and obligations depend on specific circumstances. Employers should consult Missouri Division of Workers’ Compensation and legal counsel for determinations.

Source: Missouri Division of Workers’ Compensation – https://labor.mo.gov/dwc

3. Missouri Human Rights Act

Statutory Citation: RSMo Chapter 213
Effective Date: Various amendments over time Official Source: https://revisor.mo.gov/main/OneChapter.aspx?chapter=213

General Provisions: According to state law, the Missouri Human Rights Act generally prohibits employment discrimination based on:

  • Race
  • Color
  • Religion
  • National origin
  • Ancestry
  • Sex
  • Disability
  • Age (40-69 for employment)

Administrative Process: The statute generally provides that:

  • Complaints may be filed with the Missouri Commission on Human Rights
  • The Commission investigates alleged discrimination
  • Remedies may be available through administrative process or court action

Application to Remote Work: Anti-discrimination protections generally apply regardless of work location. Specific coverage depends on employer size and other factors. Consult Missouri Commission on Human Rights or legal counsel.

Source: Missouri Commission on Human Rights – https://labor.mo.gov/mohumanrights

4. Missouri Unemployment Insurance Law

Statutory Citation: RSMo Chapter 288
Official Source: https://revisor.mo.gov/main/OneChapter.aspx?chapter=288

General Framework: According to statute, Missouri’s unemployment insurance program:

  • Provides temporary benefits to eligible unemployed workers
  • Is funded entirely by employer contributions (no employee payroll deductions)
  • Defines covered employment and exemptions
  • Establishes eligibility requirements for benefits

Employer Coverage: The law generally applies to employers who:

  • Pay wages of $1,500 or more in any calendar quarter, OR
  • Employ one or more individuals for 20 different weeks in a calendar year

Worker Classification: The statute includes specific tests for determining whether workers are employees or independent contractors for unemployment insurance purposes.

Source: Missouri Division of Employment Security – https://labor.mo.gov/des

Employee Classification Standards in Missouri

Missouri’s Classification Approach

According to various Missouri sources, worker classification in Missouri depends on the purpose for which the classification is being made. Different tests may apply for different purposes:

For Unemployment Insurance: Missouri law (RSMo Chapter 288) includes specific definitions For Tax Purposes: The IRS Common Law test applies For Workers’ Compensation: Missouri courts have developed case law interpreting employment relationships For Wage and Hour: Federal FLSA standards generally control

General Principle: Missouri does not use a single “ABC test” for all purposes. Instead, Missouri generally applies variations of the common law “right to control” test, with some statutory modifications for specific programs.

Source: Missouri Department of Labor – https://labor.mo.gov/off-the-books

IRS Common Law Test (For Federal Tax Purposes)

The Internal Revenue Service applies a “common law” test to determine worker status for federal tax purposes. According to IRS guidance, this test examines the degree of control and independence in the relationship.

Three Main Categories of Evidence:

1. Behavioral Control Factors that may be considered include:

  • Whether the business instructs the worker about when, where, and how to work
  • Whether the business provides training to the worker
  • Whether the business evaluates how the work is performed

2. Financial Control Factors that may be considered include:

  • Whether the worker has unreimbursed business expenses
  • Whether the worker has invested in facilities or tools
  • Whether the worker makes services available to other businesses
  • How the worker is paid (salary/hourly vs. flat fee)
  • Whether the worker can realize a profit or loss

3. Relationship of the Parties Factors that may be considered include:

  • Whether there is a written contract describing the relationship
  • Whether the business provides employee-type benefits
  • Whether the relationship is permanent or temporary
  • Whether the services are a key aspect of the regular business

Important: No single factor is determinative. The IRS examines the totality of the circumstances. Official determinations are made by the IRS based on all facts.

Source: IRS Publication 15-A – https://www.irs.gov/publications/p15a

Missouri’s 20-Factor Test (For State Purposes)

According to the Missouri Department of Labor, Missouri uses the IRS 20-factor test as a guide in determining if a worker is an employee. This test examines various aspects of the work relationship.

Factors That May Indicate Employee Status:

The following factors, when present, may suggest an employment relationship (this is not an exhaustive list):

  1. Instructions: Worker must comply with instructions about when, where, and how work is performed
  2. Training: Business provides training to the worker
  3. Integration: Worker’s services are integrated into business operations
  4. Personal Services: Worker must personally perform the work
  5. Hiring Assistants: Business hires, supervises, and pays worker’s assistants
  6. Continuing Relationship: There is a continuing relationship between worker and business
  7. Set Hours: Business establishes hours of work
  8. Full-Time Required: Worker must devote full time to the business
  9. Work Location: Work is performed on business premises
  10. Order of Work: Business directs the sequence or order of work
  11. Reports: Worker submits regular reports
  12. Payment Method: Worker is paid by hour, week, or month (not by job)
  13. Expenses: Business pays business or travel expenses
  14. Tools/Materials: Business furnishes tools and materials
  15. Investment: Worker has no significant investment in facilities
  16. Profit/Loss: Worker cannot realize profit or suffer loss from the relationship
  17. Single Business: Worker performs services for one business at a time
  18. Services to Public: Worker does not make services available to general public
  19. Right to Discharge: Business has right to discharge worker
  20. Right to Quit: Worker has right to quit without liability

Important Qualifications:

  • These factors are guidelines only, not definitive rules
  • No single factor is controlling
  • All factors must be considered together
  • The weight given to each factor varies by situation
  • Actual determinations are made by relevant agencies or courts based on complete facts

Source: Missouri Department of Labor – https://labor.mo.gov/off-the-books

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute classification determinations or legal advice. Actual classification depends on all facts and circumstances and should be evaluated by legal counsel and relevant agencies.

⚠️ CRITICAL DISCLAIMER: These examples are purely illustrative. They are NOT:

  • Legal determinations of worker status
  • Predictions of how classification would be decided
  • Exhaustive analyses of relevant factors
  • Guarantees of classification outcomes
  • Substitutes for professional evaluation

Scenario 1: Software Developer – Remote Work Arrangement

Fact Pattern: A Missouri company hires a developer who:

  • Works from home in Missouri using own equipment
  • Sets own hours and work schedule
  • Is paid a flat fee per completed project
  • Works for multiple clients simultaneously
  • Has established LLC for business purposes
  • Provides similar services to others in marketplace
  • Receives no training from company
  • Has no company email or identification

General Observations: This scenario includes several factors that may be commonly associated with independent contractor relationships, such as:

  • Multiple clients
  • Project-based payment
  • Flexibility in hours and methods
  • Own equipment and business entity
  • Services available to others

However, classification would require examination of additional factors such as:

  • Degree of control over work methods
  • Nature of ongoing relationship
  • Economic reality of arrangement
  • Integration into business operations
  • Complete financial arrangement

This is not a determination. Actual classification depends on totality of circumstances and requires evaluation by IRS, Missouri Division of Employment Security, legal counsel, and/or tax professionals as appropriate.

Scenario 2: Administrative Assistant – Office to Remote Transition

Fact Pattern: A worker who:

  • Previously worked in company office for 2 years
  • Transitioned to work-from-home arrangement during 2020
  • Continues same duties and schedule
  • Uses company-provided laptop and software
  • Works set hours (8am-5pm Monday-Friday)
  • Reports to same supervisor
  • Receives hourly pay and employee benefits
  • Works exclusively for this employer

General Observations: This scenario includes several factors that may be commonly associated with employee relationships, such as:

  • Ongoing relationship with single employer
  • Set hours and schedule
  • Company-provided equipment
  • Hourly compensation
  • Employee benefits provided
  • Supervision and reporting structure

The transition from office to remote work generally does not change these fundamental aspects of the employment relationship. Classification analyses typically focus on the nature of the relationship rather than physical work location.

This is not a determination. Changes in work location alone do not automatically change worker classification. Actual status depends on complete analysis of the relationship.

Scenario 3: Consultant – Short-Term Project

Fact Pattern: A business consultant who:

  • Is hired for a specific 3-month project
  • Has specialized expertise the company lacks
  • Works independently with minimal supervision
  • Uses own methods and approaches
  • Provides own laptop and tools
  • Bills monthly for services rendered
  • Has other consulting clients
  • May subcontract portions of work

General Observations: This scenario may share some characteristics with independent contractor arrangements, including:

  • Defined project scope
  • Specialized expertise
  • Independent work methods
  • Multiple clients
  • Own tools and equipment

However, classification would require analysis of:

  • Actual degree of control exercised
  • Whether work is integral to business
  • Complete financial arrangements
  • Nature of relationship in practice
  • Whether truly independently established

This is not a determination. Title (“consultant”) alone does not determine status. Actual classification requires comprehensive factual analysis.

Remote Work Considerations for Classification

For remote workers, classification analysis may involve additional considerations:

Physical Location vs. Relationship Nature:

  • Where work is performed generally does not change the fundamental nature of the work relationship
  • Classification tests focus on control, independence, and economic reality
  • Remote work may affect analysis of some factors (e.g., supervision, integration)

Factors That May Be Evaluated:

  • How work is assigned and supervised in remote setting
  • Whether worker uses own or company equipment
  • Degree of schedule flexibility
  • Method and timing of payment
  • Whether worker serves other clients while working remotely
  • Integration of services into business operations

Common Misunderstandings to Avoid:

  • Remote work does NOT automatically mean independent contractor status
  • Using own home office does NOT establish independent contractor status
  • Flexibility in hours does NOT automatically indicate independent contractor status

Recommendation: Classification of remote workers should be reviewed with legal counsel familiar with Missouri law, federal tax law, and the specific industry and circumstances.

Potential Consequences of Misclassification

According to various official sources, misclassification may result in consequences for both employers and workers. The following information is general background only.

For Employers:

Potential consequences may include (this is a non-exhaustive list):

  • Unemployment Insurance: Back taxes, penalties up to 25% of amount defrauded (per Missouri DES)
  • Workers’ Compensation: Required premium payments, penalties, potential criminal charges
  • Wage and Hour: Back pay for minimum wage/overtime, liquidated damages, penalties
  • Tax Penalties: IRS assessment of employment taxes plus penalties and interest
  • Criminal Penalties: Under Missouri law, penalties of $50 to $1,000 per day per worker; potential jail time up to six months per violation

Note: The specific consequences depend on many factors including the nature of the violation, number of workers affected, duration of misclassification, and whether violation was knowing or inadvertent. This list is not exhaustive.

For Workers:

According to various sources, misclassified workers may:

  • Lose access to unemployment insurance benefits
  • Lack workers’ compensation coverage for injuries
  • Miss out on overtime pay and minimum wage protections
  • Be responsible for full self-employment taxes
  • Lose eligibility for employee benefits
  • Have no protection under certain employment laws

Note: Workers who believe they have been misclassified can file complaints with relevant agencies or seek legal advice.

Sources:

How to Seek Guidance on Classification

Classification questions should be addressed through appropriate channels:

For Missouri Unemployment Insurance Purposes:

  • Missouri Division of Employment Security
  • Phone: 573-751-1995
  • Website: https://labor.mo.gov/des
  • Note: Can provide guidance on unemployment insurance coverage

For Federal Tax Purposes:

For Legal Advice:

For Tax Advice:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax attorney

For Workers’ Compensation:

Minimum Wage Information for Missouri

Current Rate Information (As Published by Missouri DOL)

According to the Missouri Department of Labor (source: https://labor.mo.gov/dls/minimum-wage), the state minimum wage as of December 2024 is generally:

Effective Date Standard Rate Tipped Employee Rate Notes
January 1, 2025 $13.75/hour $6.88/hour (50% of standard) As enacted by Proposition A
January 1, 2026 $15.00/hour $7.50/hour (50% of standard) As enacted by Proposition A
January 1, 2027+ $15.00/hour $7.50/hour No automatic increases (HB 567, 2025)

Legislative History:

  • Proposition A (November 2024): Approved by Missouri voters, established increases to $13.75 (2025) and $15.00 (2026), with inflation adjustments beginning 2027
  • HB 567 (July 2025): Signed by Governor Kehoe, repealed automatic inflation adjustments beginning 2027; minimum wage will remain at $15.00 after 2026 absent new legislation

Source: Missouri Department of Labor – https://labor.mo.gov/dls/minimum-wage

Employer Coverage

According to Missouri law (RSMo 290.502), the minimum wage requirements generally apply to:

Covered Employers:

  • Retail or service businesses with annual gross income of $500,000 or more
  • Employers covered by the federal Fair Labor Standards Act (FLSA)

Exemptions from State Law: The statute generally exempts:

  • Retail or service employers with annual gross income less than $500,000
  • Public employers (until August 28, 2025, when coverage begins per HB 567)
  • Certain categories of workers (see employee exemptions below)

Important: Even if exempt from state minimum wage law, employers may still be subject to federal minimum wage requirements under FLSA. When both federal and state law apply, employers must pay the higher minimum wage.

Source: RSMo 290.500-290.530

Public Employer Coverage (New as of 2025)

According to HB 567 (2025), public employers will be subject to Missouri minimum wage law:

Effective Dates:

  • August 28, 2025: Public employers must pay $13.75/hour minimum
  • January 1, 2026: Public employers must pay $15.00/hour minimum

Definition of Public Employer: The statute defines “public employer” as the state or a political subdivision, including:

  • Departments, agencies, officers, bureaus, divisions, boards, commissions of the state
  • Cities, counties, towns, villages
  • School districts
  • Other political subdivisions

Note: This represents a significant change from prior law. Public employers should consult the Missouri Division of Labor Standards for compliance guidance.

Source: HB 567 (2025), amending RSMo 290.500-290.502

Application to Remote Workers

According to general legal principles and Missouri Department of Revenue guidance:

General Rule: Minimum wage typically applies based on where work is physically performed.

For Remote Workers:

  • A worker performing work from a location in Missouri would generally be subject to Missouri minimum wage
  • Employer location is generally not the determining factor
  • The location where services are rendered typically controls

Multi-State Situations: If an employee works in multiple states during a pay period, employers may need to:

  • Track hours worked in each state
  • Apply the appropriate minimum wage for each state
  • Maintain records of work locations

However, specific situations may vary significantly. Employers with multi-state remote workers should consult Missouri Department of Labor, the Department of Labor in other applicable states, and legal counsel for guidance on particular circumstances.

Source: Missouri Department of Revenue – https://dor.mo.gov/taxation/business/remote.html

Tipped Employee Provisions

Missouri law allows employers to pay tipped employees a lower direct wage if certain conditions are met.

Tip Credit Provisions: According to Missouri law:

  • Tipped minimum wage is 50% of standard minimum wage
  • 2025: $6.88/hour direct wage
  • 2026: $7.50/hour direct wage
  • Employer must ensure total compensation (direct wage + tips) equals or exceeds standard minimum wage

Requirements for Tip Credit: Employers seeking to use tip credit must generally:

  • Inform employees of tip credit provisions
  • Ensure employees receive sufficient tips to meet standard minimum wage
  • Make up any shortfall if tips are insufficient

Definition of Tipped Employee: Generally, an employee who customarily and regularly receives more than $20 per month in tips.

Note: Tip credit rules are complex and subject to both state and federal regulation. Employers should consult Missouri Department of Labor and legal counsel to ensure compliance with all requirements.

Source: Missouri Department of Labor – https://labor.mo.gov/dls/minimum-wage

Youth Minimum Wage

According to available information, Missouri does not have a separate youth minimum wage (sometimes called “training wage”) for workers under age 18.

Federal Training Wage: Under federal FLSA, employers may pay workers under age 20 a training wage of $4.25/hour for the first 90 consecutive calendar days of employment. After 90 days, or when the employee reaches age 20, whichever comes first, full minimum wage applies.

Note: When state and federal law differ, the higher wage applies. In Missouri (2025-2026), the state minimum wage ($13.75-$15.00) exceeds the federal training wage, so the state rate would apply to covered employees.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/flsa

Exemptions from Minimum Wage

According to Missouri law and regulations, certain categories of workers may be exempt from minimum wage requirements:

Common Exemptions (Partial List):

  • Executive, administrative, and professional employees (meeting FLSA criteria)
  • Outside sales employees
  • Certain computer professionals
  • Certain seasonal and recreational employees
  • Certain agricultural workers
  • Certain family members in family businesses

Important: Exemptions are narrowly construed and highly fact-specific. Do not assume an exemption applies without verification from official sources and legal counsel. Job titles alone do not determine exemption status.

Source: RSMo 290.500-290.530; 29 CFR Part 541

Comparison Information (For Reference Only)
State 2025 Rate 2026 Rate Notes
Missouri $13.75 $15.00 No automatic increases after 2026
Kansas $7.25 $7.25 Matches federal minimum
Illinois $14.00 $15.00 Per current schedule
Iowa $7.25 $7.25 Matches federal minimum
Arkansas $11.00 $11.00 No scheduled increases
Federal $7.25 $7.25 Unchanged since 2009

Note: This comparison is for general reference only. Each state’s laws apply based on where work is performed. Rates shown are current as of information available in December 2024 and may change.

Enforcement and Penalties

According to Missouri law, enforcement mechanisms include:

Filing Complaints:

  • Workers who believe they are not being paid proper minimum wage may file a complaint
  • Complaints filed with: Missouri Division of Labor Standards
  • Phone: 573-751-3403
  • Website: https://labor.mo.gov/dls

Potential Penalties for Violations: Missouri law provides for various penalties for minimum wage violations. Specific penalties depend on circumstances and may include:

  • Back payment of owed wages
  • Civil penalties
  • Court costs and attorney fees (in some cases)

Note: Enforcement and penalties are subject to statutory requirements and agency/court determinations. Specific outcomes depend on individual circumstances.

Resources for Current Information

Official Sources:

Required Posting: All employers subject to Missouri minimum wage law must post a summary of the law in a conspicuous place accessible to employees. Posters available in English and Spanish at: https://labor.mo.gov/dls/minimum-wage

Overtime and Break Requirements in Missouri

A. Overtime Standards

Governing Framework:

According to available information, Missouri generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements, with limited additional state-specific provisions.

Statutory Authority:

  • Federal: 29 U.S.C. § 207 (FLSA)
  • Missouri: Limited state-specific overtime provisions in certain contexts

Official Sources:

General Overtime Threshold (Federal FLSA)

According to federal law, which generally governs overtime in Missouri:

Basic Rule:

  • Overtime typically triggered after 40 hours worked in a workweek
  • Rate generally required: 1.5 times the regular rate of pay
  • No daily overtime requirement under federal law

Definition of Workweek:

  • A fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods)
  • Does not need to coincide with calendar week
  • Once established, can only be changed for bona fide business reasons, not to evade overtime requirements

Missouri State Law: Missouri generally defers to federal FLSA standards for overtime. Missouri law does not impose additional daily overtime requirements or different overtime thresholds for most private employers.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

Application to Remote Workers

General Principle: Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

Considerations for Remote Workers:

  • Classification status (exempt vs. non-exempt) is the primary determinant
  • Physical work location generally does not affect overtime obligations
  • Hours worked must be accurately tracked and recorded regardless of location
  • “Suffered or permitted” work doctrine may apply to off-hours work

Specific applicability depends on:

  • Exemption status (see section below)
  • Complete employment arrangement
  • Actual hours worked
  • Other factors requiring analysis

Employers with remote workers should consult wage-hour counsel for guidance on tracking, paying, and documenting remote work hours.

Calculating Compensable Time

According to federal guidance, “hours worked” for overtime calculation purposes may include:

Generally Compensable:

  • Time actually performing work duties
  • Required meetings and training sessions
  • Time waiting to perform work (in some circumstances)
  • On-call time (depending on restrictions on employee’s freedom)
  • Pre-shift and post-shift activities (if integral and indispensable to principal activities)
  • Short breaks under 20 minutes
  • Travel time during work hours as part of principal activities

Generally Not Compensable:

  • Commuting time from home to regular workplace
  • Bona fide meal periods (30+ minutes, completely relieved of duties)
  • Time spent on personal activities

⚠️ Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours email responses: May be compensable depending on circumstances
  • On-call time at home: Depends on degree of restriction on personal activities
  • Time spent in virtual meetings outside regular hours: Generally compensable
  • Brief communications via text/chat: May be de minimis or may aggregate to compensable time
  • “Always on” expectations: May create compensability issues

Critical: These determinations are highly fact-specific and depend on factors such as:

  • Employer’s expectations and policies
  • Employee’s freedom during non-work hours
  • Whether activities are required or voluntary
  • Duration and frequency of activities
  • Other circumstances

Employers should consult wage-hour counsel for guidance on tracking and paying remote workers, particularly regarding off-hours communications and flexible schedules.

Source: 29 CFR Part 785; U.S. Department of Labor Field Operations Handbook

Overtime Exemptions

Missouri generally applies federal FLSA exemptions. Common exemptions include:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for EAP exemptions, employees generally must meet three tests:

1. Salary Basis Test According to federal regulations:

  • Employee must be paid a predetermined salary
  • Salary not subject to reduction based on quality or quantity of work
  • Limited exceptions for certain deductions

2. Salary Level Test

2025-2026 Federal Salary Thresholds:

According to U.S. Department of Labor regulations:

  • Current threshold (effective July 1, 2024): $844 per week ($43,888 annually)
  • Scheduled increase (July 1, 2025): $1,128 per week ($58,656 annually)

Note: Thresholds are subject to change through regulatory action. Verify current requirements with U.S. Department of Labor before making exemption determinations.

Missouri State Considerations: Missouri does not have a separate state salary threshold. Federal thresholds apply to FLSA-covered employees in Missouri.

Highly Compensated Employee (HCE) Threshold:

  • Current threshold: $132,964 annually
  • May increase to $151,164 annually (July 1, 2025)
  • Simplified duties test applies to HCE exemption

Source: U.S. Department of Labor, Wage and Hour Division

3. Duties Tests

According to federal regulations, exempt duties generally include:

Executive Exemption:

  • Primary duty: Management of enterprise or recognized department/subdivision
  • Customarily and regularly directs work of two or more employees
  • Authority to hire/fire or recommendations given particular weight

Administrative Exemption:

  • Primary duty: Performance of office or non-manual work directly related to management or general business operations
  • Primary duty includes exercise of discretion and independent judgment on significant matters

Professional Exemption:

  • Learned Professional: Work requiring advanced knowledge in field of science or learning, acquired through prolonged specialized instruction
  • Creative Professional: Work requiring invention, imagination, originality, or talent in recognized artistic or creative field

Important Qualifications:

  • These are simplified summaries only
  • Actual regulations contain extensive detail and limitations
  • Job title alone does not determine exemption status
  • Meeting salary threshold alone is insufficient
  • All three tests (salary basis, salary level, duties) must be satisfied

⚠️ Classification Errors Have Consequences: Misclassifying employees as exempt can result in:

  • Back payment of overtime wages
  • Liquidated damages (equal to back wages owed)
  • Civil penalties
  • Attorney fees and costs
  • DOL investigation and enforcement action

Exemption classifications should be made with guidance from legal counsel and careful analysis of federal regulations.

Source: 29 CFR Part 541

Computer Professional Exemption

According to federal regulations, computer professionals may be exempt if they meet:

Compensation Test (2025-2026): May be paid:

  • Salary: At least $844/week ($43,888 annually) – increasing to $1,128/week ($58,656 annually) July 1, 2025, OR
  • Hourly: At least $27.63/hour (may increase)

Duties Test: Primary duty must consist of:

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems
  • Combination of above duties requiring similar skill

Note: Computer professional exemption does not include:

  • Employees engaged in manufacture or repair of computer hardware
  • Employees whose work is highly dependent on use of computers but whose primary duty is not the above activities

Source: 29 CFR § 541.400

Outside Sales Exemption

According to federal regulations, outside sales employees may be exempt if:

Requirements:

  • Primary duty: Making sales or obtaining orders or contracts
  • Customarily and regularly engaged away from employer’s place of business
  • No minimum salary requirement

Note: “Away from employer’s place of business” does not include work performed remotely from home for an employer with a separate office location. Remote workers would typically not qualify for outside sales exemption unless genuinely working in the field making sales calls.

Source: 29 CFR § 541.500

Other Exemptions

Federal law provides various other exemptions that may apply in specific circumstances:

  • Certain seasonal/recreational employees
  • Certain agricultural workers
  • Certain transportation workers
  • Certain commissioned employees (meeting specific criteria)
  • Other categories specified in FLSA and regulations

Important: Each exemption has specific requirements. Consult regulations and legal counsel before applying any exemption.

Remote Work and Exemption Status

Key Principle: Work location (remote vs. on-site) generally does not determine exemption status. The nature of the job duties and compensation determines whether an employee is exempt.

Common Questions:

Q: Does working from home affect exemption status? Generally no. If an employee meets the salary basis, salary level, and duties tests while working on-site, those tests are typically still met when working remotely.

Q: Can we require exempt employees working remotely to work specific hours? Yes. Employers can set schedules for exempt employees. However, making improper deductions for partial-day absences could jeopardize exempt status.

Q: Must we track hours for exempt remote workers? Not required under FLSA for overtime purposes, but:

  • Some tracking may be required for other purposes (FMLA, paid sick leave laws, client billing)
  • Best practice for managing remote work arrangements
  • May be required by specific company policies

Source: U.S. Department of Labor Opinion Letters and Guidance

⚠️ CRITICAL REMINDER FOR OVERTIME SECTION: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, liquidated damages, and penalties. This information is for general background only. Employers should obtain professional guidance on:

  • Employee classification (exempt vs. non-exempt)
  • Time tracking systems and policies
  • Compensable time determinations
  • Remote work arrangements
  • Exemption analyses

Consult employment counsel experienced in wage and hour law before making classification decisions or implementing policies.

B. Meal and Rest Break Requirements

Missouri’s approach to meal and rest breaks differs significantly from many other states.

Missouri Law: No Mandatory Breaks for Adult Employees

According to the Missouri Department of Labor (source: https://labor.mo.gov/dls/general):

General Rule: Missouri law does not require employers to provide meal periods or rest breaks for adult employees.

What this means:

  • Employers are generally not required by Missouri state law to provide lunch breaks
  • Employers are generally not required by Missouri state law to provide rest breaks
  • Break provision is left to employer discretion, company policy, or employment agreements
  • No Missouri law specifies timing or duration of breaks if provided

Exception for Minors: Missouri does require breaks for minors (under age 16) working in the entertainment industry:

  • Meal break: Required after 5.5 hours of work
  • Rest breaks: 15-minute paid break every 2 hours in entertainment industry

Source: Missouri Department of Labor – https://labor.mo.gov/dls/general

Federal Break Standards (Apply When Employer Provides Breaks)

While federal law does not require employers to provide breaks, the Fair Labor Standards Act (FLSA) establishes rules for breaks when employers choose to provide them:

Short Breaks (5-20 minutes): According to federal regulations:

  • Must be paid as compensable work time
  • Count toward hours worked for overtime calculation
  • Cannot be offset against other working time

Meal Periods (30+ minutes): According to federal regulations, meal periods may be unpaid if:

  • Duration is 30 minutes or longer, AND
  • Employee is completely relieved of all duties, AND
  • Employee is free to leave workstation and use time for own purposes

If Employee Works During Meal Period: If an employee is required to perform any duties (active or inactive) during meal period, the time must be compensated as working time.

Examples of Work During Meal:

  • Answering phones or emails
  • Monitoring equipment
  • Being “on-call” to respond to issues
  • Attending working lunches or meetings
  • Remaining at desk waiting for work

Source: 29 CFR § 785.18-19; U.S. Department of Labor Field Operations Handbook

Implications for Remote Workers

Meal and Rest Breaks for Remote Employees:

  • Same federal rules apply whether employee works on-site or remotely
  • If employer provides breaks, short breaks (5-20 min) must be paid
  • Meal periods (30+ min) may be unpaid if employee is completely relieved of duties

Challenges Specific to Remote Work:

  • Verifying breaks are actually taken
  • Ensuring employees do not work during unpaid meal periods
  • Monitoring work during breaks (emails, chat messages, etc.)
  • Documenting compliance with break policies

Considerations for Employers:

  • Clear written policies about break expectations
  • Time tracking systems that record breaks
  • Training for remote workers on break policies
  • Monitoring systems that flag employees working during unpaid breaks
  • Regular reminders about importance of taking breaks

Considerations for Employees:

  • Understanding whether breaks are provided
  • Actually taking breaks when provided
  • Not performing work during unpaid meal periods
  • Documenting any time worked during breaks
  • Reporting to supervisor if unable to take breaks

Note: Even though breaks are not required by Missouri law, if an employer establishes a break policy, the employer should generally follow the policy consistently to avoid potential claims of discrimination or other issues.

Comparison with Neighboring States (For Context)
State Meal Break Required Rest Break Required
Missouri No (except minors in entertainment) No (except minors in entertainment)
Kansas No No
Illinois Yes (7.5+ hour shift) No
Iowa No No
Arkansas No No

Note: This comparison is for general context only. Each state’s laws apply based on where work is performed.

Resources for Break Compliance

Missouri:

Federal:

Paid Sick Leave: Historical Context and Current Status

⚠️ IMPORTANT – TIME-SENSITIVE INFORMATION: Missouri’s paid sick leave requirements changed significantly in 2025. The information below reflects the current legal landscape as of December 2024. This is a rapidly evolving area – verify current status before making policy decisions.

Legislative and Legal Timeline

Understanding Missouri’s paid sick leave situation requires understanding the recent legislative history:

November 5, 2024: Proposition A approved by Missouri voters (~58% yes vote)

  • Increased minimum wage to $13.75 (2025) and $15.00 (2026)
  • Required employers to provide earned paid sick time beginning May 1, 2025

December 2024 – April 2025: Legal challenges filed

  • Missouri Chamber of Commerce and business groups challenged constitutionality
  • Claimed Proposition A violated single-subject rule

April 29, 2025: Missouri Supreme Court upheld Proposition A

  • Rejected constitutional challenges
  • Confirmed paid sick leave requirement would take effect May 1, 2025

May 1, 2025: Paid sick leave mandate took effect

  • Employers required to begin providing earned paid sick time

May-July 2025: Legislative action to repeal

  • House Bill 567 introduced and passed Missouri Legislature
  • Designed to repeal paid sick leave mandate

July 10, 2025: Governor signed HB 567

  • Repealed paid sick leave requirement
  • Effective date: August 28, 2025

August 28, 2025: Paid sick leave mandate ended

  • Employers no longer required to provide paid sick time under state law

Current Status (December 2024 forward):

  • No state-mandated paid sick leave requirement in Missouri
  • Paid sick leave was required only from May 1, 2025 through August 27, 2025

Sources:

Proposition A: What It Required (May 1 – August 27, 2025)

For the period when paid sick leave was mandated, the law generally required:

Coverage:

  • Employers with 15+ employees: Up to 56 hours (7 days) per year
  • Employers with fewer than 15 employees: Up to 40 hours (5 days) per year
  • Employee threshold based on 20 or more different calendar weeks

Accrual:

  • Rate: 1 hour of paid sick time for every 30 hours worked
  • Began accruing the later of May 1, 2025, or date of hire
  • Employees could use accrued time immediately upon accrual

Permitted Uses: According to Proposition A, paid sick time could be used for:

  • Employee’s own mental or physical illness, injury, or health condition
  • Medical diagnosis, care, treatment, or preventative care
  • Care for family member with illness, injury, or health condition
  • Absences due to domestic violence, sexual assault, or stalking (for employee or family member)

Carryover and Caps:

  • Up to 80 hours could be carried over to following year
  • Employers could cap annual use at accrual maximum (40 or 56 hours depending on employer size)

Notice and Documentation:

  • Employees generally required to provide notice when foreseeable
  • Employers could require documentation for absences of 3+ consecutive workdays
  • Documentation had to be reasonable and not require disclosure of details about health condition

Source: Proposition A, codified temporarily at RSMo § 290.600-290.619 (effective May 1 – August 27, 2025)

HB 567: The Repeal

What HB 567 Did:

  • Repealed paid sick leave mandate effective August 28, 2025
  • Maintained minimum wage increases to $15.00 in 2026
  • Eliminated automatic inflation adjustments to minimum wage after 2026
  • Added public employers to minimum wage coverage

Effective Period of Paid Sick Leave: Paid sick leave was state-mandated for only 17 weeks:

  • Start: May 1, 2025
  • End: August 27, 2025

What Happened to Accrued Time: HB 567 did not specify what employers must do with paid sick time accrued between May 1 and August 27, 2025. According to various legal analyses:

  • No clear guidance from Missouri Department of Labor
  • Employers faced uncertainty about whether to:
    • Pay out accrued unused time
    • Allow continued use after August 28
    • Forfeit accrued time
  • Legal risk existed for various approaches

Source: HB 567 (2025); Missouri Chamber of Commerce guidance

Current Legal Status (August 28, 2025 Forward)

No State Mandate: As of August 28, 2025, Missouri does not require employers to provide paid sick leave.

What This Means:

  • Employers are generally not required by Missouri state law to provide paid sick leave
  • Provision of paid sick leave is at employer discretion
  • Employers may choose to provide sick leave voluntarily
  • Employer policies and employment contracts control if paid sick leave is offered

Federal Laws Still Apply: While Missouri does not mandate paid sick leave, certain federal laws provide related protections:

  • Family and Medical Leave Act (FMLA): Unpaid leave for qualifying reasons (see separate section)
  • Americans with Disabilities Act (ADA): May require leave as reasonable accommodation
  • Emergency Paid Sick Leave Act: Was temporary (expired 2021)

Looking Forward: Potential 2026 Constitutional Amendment

According to news reports, proponents of paid sick leave are seeking to place a new paid sick leave measure on the 2026 ballot as a constitutional amendment.

Why Constitutional Amendment:

  • Constitutional amendments are more difficult for legislature to repeal
  • Requires voter approval to change

Potential Provisions: According to petition language:

  • Could reinstate paid sick leave requirements similar to Proposition A
  • May include additional provisions

Status:

  • Petition initiative filed with Missouri Secretary of State (Initiative 2026-047)
  • Signature gathering phase
  • If sufficient signatures obtained, would appear on 2026 ballot

Note: This is a developing issue. Check Missouri Secretary of State website for current status: https://www.sos.mo.gov/elections/initiatives

Implications for Employers: Some employers may choose to maintain paid sick leave policies to:

  • Avoid “policy whiplash” if constitutional amendment passes
  • Maintain competitive benefits
  • Support employee health and retention
  • Prepare for potential future requirements

However, this is a business decision each employer must make based on their circumstances.

Employer Considerations Post-Repeal

Policy Options: Employers have several options regarding paid sick leave:

Option 1: Discontinue Paid Sick Leave

  • Legally permissible as of August 28, 2025
  • Should provide written notice to employees
  • Consider employee relations and retention impact

Option 2: Continue Paid Sick Leave Voluntarily

  • May aid recruitment and retention
  • Supports employee health and productivity
  • Prepares for potential 2026 constitutional amendment
  • Requires consistent application to avoid discrimination claims

Option 3: Modify Existing PTO Policies

  • Integrate sick leave into general PTO
  • Maintain flexibility while providing benefits
  • Ensure policies are clearly communicated

Option 4: Maintain Status Quo Pending 2026

  • Wait to see if constitutional amendment passes
  • Avoid multiple policy changes
  • May be prudent for risk-averse employers

Recommendation: Consult with legal counsel and HR professionals when making decisions about sick leave policies, particularly:

  • How to communicate changes to employees
  • How to document policy decisions
  • How to ensure consistent application
  • How to prepare for potential future changes

Record Retention

For Period When Paid Sick Leave Was Required (May 1 – August 27, 2025):

According to Proposition A (as it existed), employers were required to maintain compliance records for at least three years. Even though the mandate has been repealed, employers should consider:

Retention Recommendation: Maintain records documenting compliance with paid sick leave requirements through August 28, 2028 (three years after repeal), including:

  • Accrual calculations
  • Use of paid sick time
  • Notices provided to employees
  • Documentation of policies
  • Records of any disputes or issues

Rationale:

  • Protection against potential legal challenges
  • Documentation if employees file complaints
  • Evidence of good-faith compliance during mandate period

Payment and Final Wage Requirements

Regular Payment Requirements

According to Missouri law and regulations, employers must comply with certain wage payment requirements.

Payment Frequency:

Missouri law (RSMo § 290.110) generally requires:

  • Wages must be paid at least semi-monthly (twice per month), OR
  • Wages must be paid at intervals not exceeding 16 days

Method of Payment: Employers may pay wages by:

  • Cash
  • Check
  • Direct deposit (with employee authorization)
  • Payroll card (with employee authorization and certain protections)

Timing of Payments: Payments are generally due within 16 days of the end of the pay period in which wages were earned.

Source: RSMo § 290.110

Final Wages Upon Termination

Missouri has specific requirements for paying final wages when employment ends.

Discharge or Layoff: According to Missouri law (RSMo § 290.110):

  • Final wages due: On the day of discharge
  • If not paid on discharge day, employer has 7 days to pay after written demand

Voluntary Resignation: Missouri law does not specify a deadline for final wages when an employee quits voluntarily. However:

  • Best practice: Pay on next regular payday
  • May be required by employer policy or employment contract
  • Federal law may impose deadlines in some circumstances

Written Demand Requirement: If final wages are not paid on day of discharge:

  • Employee should request wages in writing
  • Request should be sent certified mail, return receipt requested
  • Employer has 7 days from receipt of written request to pay
  • If not paid within 7 days after demand, additional penalties may apply

Penalties for Failure to Pay Final Wages

According to Missouri law (RSMo § 290.110), if an employer fails to pay final wages as required:

Automatic Penalty: The statute provides that if wages are not paid when due:

  • Employer may be liable for continued payment of wages
  • Wages continue to accrue until paid
  • Maximum period: Up to 60 days
  • Calculation: Based on employee’s regular rate of pay

Example (Illustrative Only): An employee earning $15/hour working 40 hours/week is terminated. Employer does not pay final wages on discharge date. Employee sends certified written demand. Employer does not pay within 7 days. Potential penalty could include continued wages at $600/week until paid, up to maximum of 60 days.

Note: This example is for illustration only. Actual penalties depend on specific circumstances, calculations, and legal determinations.

Deductions from Wages

Missouri law limits what can be deducted from employee wages.

Permissible Deductions: Generally, Missouri law allows deductions for:

  • Required by Law: Federal and state taxes, Social Security, Medicare, court-ordered garnishments
  • Authorized in Writing: Deductions the employee has authorized in writing (insurance premiums, retirement contributions, etc.)
  • For Employee’s Benefit: When properly authorized and for employee’s benefit

Prohibited Deductions: Missouri law generally prohibits deductions for:

  • Employer’s Benefit: Deductions that primarily benefit the employer rather than employee
  • Business Expenses: Costs of doing business (except in limited circumstances with written authorization)
  • Shortages, Damages, Losses: Without proper authorization and limitations

Special Rules:

  • Deductions cannot reduce wages below minimum wage
  • Final paycheck cannot be withheld pending return of property
  • Deductions must be clearly itemized

Disputed Deductions: If an employee believes improper deductions were made:

  • May file complaint with Missouri Division of Labor Standards
  • May have right to sue for recovery
  • May be entitled to additional penalties

Source: RSMo § 290.110; Missouri Department of Labor guidance

Remote Workers and Wage Payment

Payment to Remote Workers: Same rules apply whether employee works on-site or remotely:

  • Must be paid at required intervals
  • Final wages due on same timeline
  • Same methods of payment available

Multi-State Considerations: For employees working remotely from other states:

  • Missouri rules apply to work performed in Missouri
  • Other states’ rules may apply to work performed in those states
  • Employers with multi-state remote workers should consult counsel

Electronic Payment: Electronic payment methods (direct deposit, payroll cards) are particularly common for remote workers:

  • Must comply with Missouri requirements for authorization
  • Cannot be required as sole payment method without proper authorization
  • Must provide access to funds without excessive fees

Time Records and Wage Statements

Record Keeping Requirements:

Federal FLSA and Missouri law generally require employers to maintain:

  • Hours worked by each employee
  • Wages paid
  • Deductions made
  • Pay period dates

Retention: Records should be maintained for at least 3 years (federal requirement).

Wage Statements: While Missouri does not have extensive wage statement requirements, best practices include providing employees with information about:

  • Hours worked
  • Rate of pay
  • Gross wages
  • Deductions
  • Net pay

Remote Workers: Accurate time tracking is particularly important for remote workers:

  • Use reliable time tracking systems
  • Document start/stop times
  • Record meal breaks
  • Capture all compensable work time

Resources for Wage Payment Issues

Missouri Division of Labor Standards:

U.S. Department of Labor:

Wage Complaints: Employees who believe they have not been paid properly may:

  • File complaint with Missouri Division of Labor Standards
  • File complaint with U.S. Department of Labor
  • Consult with an employment attorney about potential claims

Workers' Compensation Overview for Missouri

Legal Framework

Statutory Authority: RSMo Chapter 287 (Missouri Workers’ Compensation Law)

Administering Agency: Missouri Division of Workers’ Compensation

Source: Missouri Division of Workers’ Compensation – https://labor.mo.gov/dwc

General Coverage Requirements (As Stated in Law)

According to Missouri statutes (RSMo Chapter 287) and regulations, workers’ compensation coverage is generally:

Coverage Thresholds:

  • Construction trades: Coverage generally required for employers with 1 or more employees
  • Other industries: Coverage generally required for employers with 5 or more employees
  • Part-time employees: May count toward the employee threshold depending on circumstances

Exemptions from Coverage: The statute generally exempts certain categories of workers and employers:

  • Certain agricultural workers
  • Domestic servants in private homes
  • Real estate agents (under certain circumstances)
  • Certain casual employees
  • Corporate officers/members under specific circumstances
  • Other categories specified in RSMo § 287.090

Important: Coverage determinations can be complex and fact-specific. Employers uncertain about their obligations should consult Missouri Division of Workers’ Compensation or legal counsel.

Source: RSMo §§ 287.030, 287.040, 287.090

Missouri’s Workers’ Compensation System

Missouri operates a competitive insurance system for workers’ compensation:

Insurance Options:

1. Private Insurance

  • Employers purchase policy from authorized insurance carrier
  • Competitive market with multiple carriers
  • Premiums based on payroll, industry classification, claims history

2. Self-Insurance

  • Employers may self-insure if they meet requirements
  • Must demonstrate financial ability to pay claims
  • Subject to approval by Division of Workers’ Compensation
  • Strict reporting and bonding requirements

3. Group Self-Insurance

  • Groups of employers may form self-insurance funds
  • Subject to regulatory requirements
  • Must meet solvency standards

Penalties for Non-Compliance: According to RSMo § 287.120, failure to maintain required coverage may result in:

  • Criminal Penalties: Class A misdemeanor (first offense); Class E felony (subsequent offenses)
  • Fines: Up to three times annual premium that would have been paid OR up to $50,000, whichever is greater
  • Civil Liability: Employer loses certain defenses if injury occurs while uninsured

Source: RSMo §§ 287.280, 287.990; Missouri Division of Workers’ Compensation – https://labor.mo.gov/dwc

Compensable Injuries: General Legal Standard

According to Missouri law (RSMo § 287.020), an injury is compensable if it:

1. Arises Out Of Employment

  • Must have causal connection to employment
  • Must be from hazard related to employment, not general public hazards

2. In the Course Of Employment

  • Must occur during the period of employment
  • Must be while performing job duties or activities incidental to employment

3. The Accident is the Prevailing Factor Missouri law defines “prevailing factor” as “the primary factor, in relation to any other factor, causing both the resulting medical condition and disability.”

Additional Requirements:

  • Injury does not result from idiopathic causes (personal health conditions unrelated to work)
  • For cardiovascular/pulmonary conditions: accident must be prevailing factor in causing condition

Note: These are complex legal standards that require factual analysis and legal interpretation. Actual determinations are made by Missouri Division of Workers’ Compensation based on complete circumstances.

Source: RSMo § 287.020; RSMo § 287.120

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Framework: The same legal standard applies to remote workers: injury must “arise out of and in the course of employment.” Application of this standard to remote workers is highly fact-dependent.

Factors That May Be Relevant:

According to case law and agency guidance, factors that may be considered in remote work injury cases include (non-exhaustive):

  1. Work Activity at Time of Injury
    • Was employee engaged in actual work tasks?
    • Was activity furthering employer’s business?
    • Was activity required or expected by employer?
  2. Location and Work Area
    • Was injury in designated home office area?
    • Was location known/approved by employer?
    • Was area primarily used for work?
  3. Timing Factors
    • Did injury occur during work hours?
    • Was employee on duty or available for work?
    • Was injury during break or off-duty time?
  4. Employer Control and Expectations
    • What level of control did employer maintain?
    • What were employer’s instructions/expectations?
    • Was activity authorized by employer?
  5. Relationship to Employment
    • Was activity integral to job duties?
    • Would injury have occurred regardless of employment?
    • Was activity of benefit to employer?

⚠️ Important: This list is not exhaustive, and no single factor is determinative. Actual coverage determinations require analysis of all circumstances by the Missouri Division of Workers’ Compensation, potentially including hearings and legal proceedings.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations or legal advice. Actual coverage depends on complete factual circumstances and official determination by Missouri workers’ comp system.

Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by Missouri Division of Workers’ Compensation based on complete information, often after investigation, hearings, and legal analysis.

Scenario Category: Work-Related Activities in Home Office

Example Situation A: Remote employee trips over computer cables in designated home office while retrieving work files during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have been found compensable in other contexts, such as:

  • Activity (retrieving work files) was work-related
  • Occurred in designated work area (home office)
  • During scheduled work hours
  • Hazard (cables) related to work equipment

However, compensability would depend on complete factual analysis including:

  • Whether home office was formally designated/approved by employer
  • Whether employer knew of or authorized home office setup
  • Whether hazard was created by work activities
  • Whether employer provided or approved equipment placement
  • Other specific circumstances

This is not a coverage determination. Actual determination would be made by Missouri Division of Workers’ Compensation based on all facts, potentially including investigation, medical evaluation, and legal proceedings.

Example Situation B: Employee develops carpal tunnel syndrome from extended computer use performing work duties from home.

General Observations: Repetitive stress injuries from work activities may potentially be compensable in some circumstances, depending on factors such as:

  • Medical documentation establishing work-relatedness
  • Whether condition arose from employment as “prevailing factor”
  • Nature and duration of work activities
  • Other personal or non-work factors

Determination would require:

  • Complete medical evaluation and documentation
  • Analysis of work duties and activities
  • Evaluation of causation
  • Assessment whether accident/work was “prevailing factor”

This is not a coverage determination. Consult medical professionals and Missouri Division of Workers’ Compensation for actual determinations. Note: Missouri law requires accident to be “prevailing factor” in causing both the condition and disability.

Scenario Category: Personal Activities at Home

Example Situation C: Remote employee injured while preparing personal meal in kitchen during lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related under general principles, based on factors such as:

  • Activity was personal in nature (preparing own meal)
  • During lunch break (not working)
  • In kitchen (not work area)
  • No connection to work duties

However, specific analysis would depend on:

  • Whether employee was completely relieved of duties during lunch
  • Whether employer provided/required meal break
  • Whether kitchen is within or separate from work area
  • Whether any work-related factors were involved
  • Complete circumstances

This is not a coverage determination. Actual coverage depends on totality of circumstances and requires official determination.

Example Situation D: Employee injured while descending stairs in home to answer work-related phone call during work hours.

General Observations: This scenario presents mixed factors:

  • Activity was in response to work requirement (work phone call)
  • During work hours
  • But injury occurred during transit within home
  • Stair hazard unrelated to work

Analysis would likely consider:

  • Whether answering calls was required job duty
  • Whether employee was on-call or available
  • Whether home layout was known to employer
  • Whether injury arose from employment hazard
  • Missouri’s “arising out of” requirements

This is not a coverage determination. The interaction of work requirements with home hazards creates complex causation questions requiring official analysis.

When in doubt about coverage, employees should:

  1. Report injury promptly to employer
  2. Seek medical attention
  3. Contact Missouri Division of Workers’ Compensation
  4. Consider consulting workers’ compensation attorney

Employers should:

  1. Report all potential claims to insurance carrier
  2. Maintain detailed records
  3. Consult legal counsel for coverage questions
  4. Allow insurance carrier/Division to make coverage determinations

Benefits Generally Available (From Statute)

According to Missouri workers’ compensation statutes, benefits may include:

1. Medical Treatment

  • All necessary medical care to cure and relieve effects of injury
  • Employer/insurer chooses treating physician (with some exceptions)
  • Employee may change physicians under certain circumstances
  • Medical treatment is generally provided without dollar or time limits if related to compensable injury

2. Temporary Total Disability

  • Benefits while unable to work due to injury
  • Generally two-thirds of average weekly wage
  • Subject to statutory minimum and maximum amounts
  • Three-day waiting period (waived if disability lasts more than 14 days)

3. Temporary Partial Disability

  • Benefits when able to work but earning less due to injury
  • Generally two-thirds of difference between pre-injury and current wages
  • Subject to limitations

4. Permanent Partial Disability

  • Benefits for permanent impairment
  • Based on medical evaluation and statutory schedule
  • Payment varies depending on type and extent of injury

5. Permanent Total Disability

  • Benefits for injuries resulting in total inability to work
  • Generally two-thirds of average weekly wage
  • May continue for life in some circumstances

6. Death Benefits

  • Benefits to dependents if worker dies from work injury
  • Includes funeral expenses and ongoing payments to survivors
  • Specific amounts based on number and relationship of dependents

Note: Specific benefit amounts, duration, and eligibility depend on injury circumstances, wage history, and statutory formula. Consult Missouri Division of Workers’ Compensation or claims administrator for information about specific claims.

Source: RSMo §§ 287.140, 287.190, 287.200, 287.220, 287.230, 287.240

Reporting and Claim Process (General Framework)

According to Missouri regulations, the general process typically involves:

For Employees:

1. Report Injury to Employer

  • Timing: Within 30 days of accident or occupational disease/repetitive trauma diagnosis
  • Method: Written notice required (name, address, time, place, manner of injury)
  • To Whom: Notify supervisor or management
  • Consequences of Delay: May affect claim if not reported timely

2. Seek Medical Treatment

  • Employer/insurer generally selects treating physician
  • Employee entitled to emergency treatment
  • May request change of physician under certain circumstances

3. File Claim for Compensation (if necessary)

  • File with Missouri Division of Workers’ Compensation if dispute arises
  • Generally must file within 2 years of injury (with some exceptions)
  • Forms available at: https://labor.mo.gov/dwc

For Employers:

1. Report to Insurance Carrier

  • Immediately upon learning of injury
  • Even if injury seems minor

2. File Report of Injury

  • Form: First Report of Injury
  • To: Missouri Division of Workers’ Compensation (filed by insurer/TPA)
  • Deadline: Within 30 days of knowledge of injury
  • Consequences: Penalties for failure to report

3. Maintain Records

  • Documentation of injury circumstances
  • Medical treatment information
  • Wage records
  • Return to work information

Source: RSMo § 287.420; 8 CSR 50-2.010

Best Practices for Remote Work (Recommendations Only)

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers:

Home Office Setup:

  • Consider providing ergonomic equipment or guidance
  • Consider documenting employee’s remote work location and setup
  • Consider home office safety assessments or checklists
  • Consider clear policies on work areas and equipment

Injury Prevention:

  • Provide safety training for remote workers
  • Offer ergonomic guidance
  • Encourage regular breaks and stretching
  • Promote proper workspace setup

Documentation and Procedures:

  • Develop clear injury reporting procedures for remote workers
  • Create systems for prompt reporting
  • Document remote work arrangements
  • Maintain contact information for emergencies

Workers’ Compensation Insurance:

  • Notify insurance carrier of remote work arrangements
  • Ensure remote workers are properly covered
  • Report all injuries promptly
  • Consult with carrier about remote work considerations

For Employees:

Workspace Setup:

  • Set up dedicated work area when possible
  • Ensure proper lighting and ergonomics
  • Keep work area free of hazards
  • Use proper equipment and furniture

Injury Reporting:

  • Report ALL work-related injuries promptly
  • Document circumstances thoroughly
  • Seek appropriate medical attention
  • Maintain records of work activities and injuries

Work Boundaries:

  • Maintain clear work hours when possible
  • Take regular breaks
  • Follow employer safety guidelines
  • Communicate with supervisor about concerns

Note: These are recommendations only. Actual legal obligations depend on specific circumstances, employment agreements, company policies, and applicable law.

Resources and Contacts

Missouri Division of Workers’ Compensation:

For Employees:

  • Report injuries to employer immediately
  • Contact Division of Workers’ Compensation for questions: 800-775-2667
  • Consider consulting with workers’ compensation attorney if claim disputed

For Employers:

  • Report all injuries to insurance carrier immediately
  • Contact carrier for coverage questions
  • Consult workers’ compensation attorney for complex situations
  • Missouri Workers’ Compensation Insurance Information: https://labor.mo.gov/dwc

Legal Assistance:

Other Leave Entitlements

A. Family and Medical Leave Act (FMLA)

⚠️ Note: FMLA is a federal law. Missouri does not have a separate state family and medical leave law for private employers. State employees may have additional provisions under state regulations.

Federal Law: Family and Medical Leave Act

Coverage: According to federal law, FMLA applies to:

  • Private employers with 50+ employees (within 75-mile radius) for 20+ weeks in current or prior year
  • All public agencies (federal, state, local government)
  • All public and private elementary and secondary schools

Employee Eligibility: To be eligible for FMLA leave, an employee must:

  • Work for a covered employer
  • Have worked for employer for at least 12 months (need not be consecutive)
  • Have worked at least 1,250 hours during 12 months immediately preceding leave
  • Work at location where employer has 50+ employees within 75 miles

For Remote Workers: According to Department of Labor guidance:

  • “Worksite” for remote workers is generally the office to which they report or are assigned
  • 50-employee threshold calculated based on that office location
  • Hours worked remotely count toward 1,250-hour requirement

Source: 29 U.S.C. § 2611; 29 CFR Part 825

Qualifying Reasons for FMLA Leave:

Eligible employees may take up to 12 weeks of unpaid, job-protected leave in a 12-month period for:

  1. Birth and Care of Newborn Child
    • Must be taken within 12 months of birth
    • Both parents employed by same employer may be limited to combined 12 weeks
  2. Placement of Child for Adoption or Foster Care
    • Must be taken within 12 months of placement
  3. Care for Spouse, Child, or Parent with Serious Health Condition
    • “Serious health condition” has specific definition in regulations
    • Must be certified by health care provider
  4. Employee’s Own Serious Health Condition
    • Must make employee unable to perform essential functions of job
    • Must be certified by health care provider
  5. Qualifying Exigency Related to Military Service
    • When employee’s spouse, child, or parent is on covered active duty or called to active duty
    • Specific qualifying exigencies defined in regulations

Military Caregiver Leave: Eligible employees may take up to 26 weeks in a single 12-month period to care for:

  • Covered service member with serious injury or illness
  • Employee must be spouse, child, parent, or next of kin of service member

Source: 29 U.S.C. § 2612; 29 CFR §§ 825.112-825.127

Key FMLA Provisions:

Unpaid Leave:

  • FMLA provides unpaid leave
  • Employer may require (or employee may choose) to use accrued paid leave concurrently with FMLA
  • Use of paid leave counts against 12-week FMLA entitlement

Intermittent or Reduced Schedule Leave:

  • May be available for serious health conditions when medically necessary
  • Must be certified by health care provider
  • Employer may temporarily transfer employee to alternative position with equivalent pay/benefits

Health Insurance Continuation:

  • Employer must maintain employee’s health insurance during FMLA leave
  • Same terms as if employee continued working
  • Employee must continue to pay employee share of premiums

Job Restoration:

  • Employee entitled to return to same or equivalent position
  • Equivalent means virtually identical pay, benefits, working conditions, duties, responsibilities
  • Limited exceptions for “key employees”

Protections:

  • Employer cannot interfere with, restrain, or deny exercise of FMLA rights
  • Employer cannot retaliate or discriminate against employee for using FMLA leave
  • Violations may result in damages, back pay, reinstatement, penalties

Notice Requirements:

  • Employee should provide 30 days advance notice when leave is foreseeable
  • When not foreseeable, notice as soon as practicable
  • Employer may require medical certification
  • Employer must provide eligibility and rights/responsibilities notices

Source: 29 CFR Part 825

Application to Remote Workers:

FMLA applies to remote workers in the same manner as on-site workers:

  • Same eligibility requirements
  • Same leave entitlements
  • Same job protections

Special Considerations:

  • “Worksite” determination important for 50-employee threshold
  • Remote work arrangement may continue during FMLA leave if appropriate
  • Intermittent leave tracking may require coordination
  • Health insurance continuation works same as for on-site employees

Resources:

⚠️ DISCLAIMER: This FMLA section provides general background information only. FMLA has detailed regulations and requirements. For specific situations:

  • Consult U.S. Department of Labor for official interpretations
  • Review 29 CFR Part 825 for complete regulations
  • Seek legal counsel for complex situations or disputes
  • Contact employer’s HR department for company-specific procedures

B. Jury Duty Leave

Missouri law provides protections for employees called to jury duty.

General Protection: According to Missouri law (RSMo § 494.460), employers generally may not:

  • Discharge employee for serving on jury
  • Threaten to discharge employee for jury service
  • Otherwise penalize employee for jury service

Paid vs. Unpaid:

  • Missouri law does not require employers to pay wages during jury duty
  • Some employers may provide paid leave as a benefit
  • Employee entitled to jury fees from court

Notice: Best practice for employees:

  • Provide employer with jury summons as soon as received
  • Follow employer’s notification procedures
  • Coordinate schedule with employer when possible

Source: RSMo § 494.460

C. Military Leave

Federal Law: Uniformed Services Employment and Reemployment Rights Act (USERRA)

USERRA provides protections for employees who serve in military:

Coverage:

  • Applies to virtually all employers regardless of size
  • Protects members of uniformed services including:
    • Army, Navy, Air Force, Marines, Coast Guard, Space Force
    • Army National Guard and Air National Guard
    • Reserves
    • Public Health Service commissioned corps
    • Other designated services

Leave Entitlements:

  • Employees generally entitled to leave for military service
  • Cumulative length of absence for military service may not exceed 5 years (with exceptions)
  • Includes active duty, training, fitness exams, funerals

Reemployment Rights:

  • Generally entitled to be reemployed in same or comparable position
  • Must give advance notice to employer (unless precluded by military necessity)
  • Must report back to work or apply for reemployment within specified time frames

Benefits Continuation:

  • Health insurance may be continued up to 24 months (employee may be required to pay)
  • Other benefits protections apply

Missouri State Law: Missouri has additional protections for state employees and may have other provisions. Consult Missouri statute for state-specific requirements.

Source: 38 U.S.C. §§ 4301-4335

D. Voting Leave

According to Missouri law (RSMo § 115.639):

Paid Leave for Voting:

  • Employees entitled to 3 hours of paid leave to vote
  • Applies if polls are not open 3 consecutive hours before or after regular work shift
  • Employee must request leave prior to election day

Restrictions:

  • Employer may designate which hours employee takes leave
  • Employee must actually use time to vote

Source: RSMo § 115.639

E. Domestic Violence Leave

⚠️ Note: Missouri previously had paid sick leave that covered domestic violence situations (May-August 2025 under Proposition A, now repealed). Currently, Missouri does not have a specific state law requiring domestic violence leave.

Federal Protections:

  • FMLA may provide leave in some domestic violence situations if they result in “serious health condition”
  • Other federal laws may provide protections in specific circumstances

Employer Policies:

  • Some employers may provide domestic violence leave as a policy matter
  • Check employer policies and procedures

F. Witness Leave

Missouri law provides protections for crime victims and witnesses.

According to RSMo § 595.209:

  • Employers may not discharge, discipline, or penalize employee for:
    • Attending court proceedings as victim or witness
    • Honoring subpoena to testify
    • Participating in preparation for criminal proceedings

Note: This generally provides job protection but does not require paid leave.

Source: RSMo § 595.209

G. Bone Marrow and Organ Donation Leave (State Employees)

Missouri provides specific leave for state employees who donate bone marrow or organs:

Bone Marrow:

  • 5 days of paid leave for bone marrow donation
  • Written notice required

Organ Donation:

  • 30 workdays of paid leave for organ donation
  • Written verification required

Note: These provisions apply specifically to state employees. Private employers are not required to provide these leaves but may do so voluntarily.

Anti-Discrimination Laws

Missouri law and federal law prohibit employment discrimination. This section provides general background information about these protections.

Missouri Human Rights Act

Missouri’s primary anti-discrimination law is the Missouri Human Rights Act (RSMo Chapter 213).

Protected Characteristics: According to Missouri law, it is generally unlawful to discriminate in employment based on:

  • Race
  • Color
  • Religion
  • National Origin
  • Ancestry
  • Sex (including pregnancy, childbirth, and related conditions)
  • Disability
  • Age (40-69 for employment)
  • Genetic information (testing or counseling)

Coverage:

  • Generally applies to employers with 6 or more employees
  • Some provisions have different employee thresholds

Prohibited Actions: The Act generally prohibits discrimination in:

  • Hiring and firing
  • Compensation and benefits
  • Terms and conditions of employment
  • Training and promotion
  • Harassment

Missouri Commission on Human Rights:

  • Investigates discrimination complaints
  • Attempts conciliation
  • May hold hearings
  • May order remedies

Contact Information:

Source: RSMo Chapter 213

Federal Anti-Discrimination Laws

Several federal laws prohibit employment discrimination:

Title VII of the Civil Rights Act of 1964 Prohibits discrimination based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, sexual orientation, gender identity)
  • National origin

Coverage: Employers with 15+ employees

Age Discrimination in Employment Act (ADEA) Prohibits discrimination based on:

  • Age (40 and older)

Coverage: Employers with 20+ employees

Americans with Disabilities Act (ADA) Prohibits discrimination based on:

  • Disability
  • Requires reasonable accommodations for qualified individuals with disabilities

Coverage: Employers with 15+ employees

Genetic Information Nondiscrimination Act (GINA) Prohibits discrimination based on:

  • Genetic information

Coverage: Employers with 15+ employees

Equal Pay Act Requires:

  • Equal pay for equal work regardless of sex

Coverage: Virtually all employers

Enforcement:

Source: Various federal statutes; EEOC – https://www.eeoc.gov

Application to Remote Workers

Anti-discrimination laws generally apply to remote workers in the same manner as on-site workers:

  • Same protected characteristics
  • Same prohibited conduct
  • Same employer obligations

Harassment:

  • Harassment protections apply to remote workers
  • May occur through electronic communications
  • Employer responsible for maintaining harassment-free environment

Reasonable Accommodations:

  • ADA reasonable accommodation obligations apply to remote workers
  • May include flexible schedules, modified equipment, other accommodations

Hiring and Promotion:

  • Discrimination prohibitions apply to hiring decisions for remote positions
  • Apply to promotions and transfers involving remote work

Filing Discrimination Complaints

Missouri Commission on Human Rights:

EEOC:

Note: Filing with Missouri Commission generally satisfies EEOC filing requirement and vice versa due to worksharing agreement.

Workplace Safety

Federal OSHA Standards

The Occupational Safety and Health Act (OSHA) requires employers to provide safe workplaces:

General Duty Clause: Employers must provide:

  • Workplace free from recognized hazards
  • Hazards likely to cause death or serious physical harm

Coverage:

  • Applies to virtually all private employers
  • Federal, state, and local government employees covered under other provisions

Application to Remote Workers: OSHA’s application to home offices is evolving. According to OSHA guidance:

  • Employers generally not required to inspect home offices
  • Employers not liable for home office hazards
  • However, employer-provided equipment must be safe

Resources:

Missouri Occupational Safety and Health

Missouri has programs to assist with workplace safety:

Missouri Workers’ Safety Program:

On-Site Safety and Health Consultation:

  • Free confidential consultation for Missouri employers
  • Helps identify hazards and improve safety programs
  • Phone: 573-522-SAFE (7233)
  • Email: safetyconsultation@labor.mo.gov

Tax Information for Remote Workers

Missouri State Income Tax

Missouri has a state income tax that may affect remote workers.

Tax Structure: According to the Missouri Department of Revenue, Missouri has a progressive income tax with rates ranging from 0% to 4.95% (as of 2025).

General Principles for Remote Work:

Missouri Residents:

  • Generally must pay Missouri income tax on all income, regardless of source
  • May claim credit for taxes paid to other states on income earned outside Missouri
  • File Form MO-1040

Non-Residents:

  • Generally pay Missouri income tax only on income earned from Missouri sources
  • Income from services performed in Missouri is Missouri-source income
  • File Form MO-1040 (non-resident or part-year resident)

Source: Missouri Department of Revenue – https://dor.mo.gov/

Withholding for Remote Workers

General Rule – Work Location Matters:

According to Missouri Department of Revenue guidance:

  • Withholding is generally based on where work is physically performed
  • If employee performs work in Missouri, wages are subject to Missouri withholding
  • Employer location is generally not the determining factor

Specific Scenarios:

Scenario 1: Missouri Resident Working Remotely in Missouri for Out-of-State Employer

  • Wages generally subject to Missouri withholding
  • Out-of-state employer may be required to register for Missouri withholding
  • Missouri resident files Missouri return reporting all income

Scenario 2: Non-Resident Working Remotely Outside Missouri for Missouri Employer

  • If work is performed entirely outside Missouri, generally not subject to Missouri withholding
  • Non-resident may not need to file Missouri return if no Missouri-source income

Scenario 3: Employee Works in Multiple States

  • Wages generally apportioned based on where work is performed
  • May require tracking work location by day
  • Withholding calculated based on Missouri-source wages

Scenario 4: Missouri Resident Working in State Without Income Tax

  • Income subject to Missouri withholding
  • Employee must provide Form MO W-4C to employer
  • Employer withholds based on percentage stated on form

Form MO W-4: Employees working in Missouri should complete Form MO W-4 for withholding calculation.

Form MO W-4C: Missouri residents working in states without income tax should complete Form MO W-4C.

Source: Missouri Department of Revenue – https://dor.mo.gov/taxation/business/remote.html

Employer Withholding Obligations

Registration: Employers with Missouri withholding obligations must:

  • Register with Missouri Department of Revenue
  • Obtain Missouri Tax ID number
  • File periodic withholding returns (Form MO-941)

Filing Frequency: Determined by amount withheld:

  • Quarter-monthly: Over $9,000/month withheld
  • Monthly: $500-$9,000/month withheld
  • Quarterly: $100-$499/month withheld
  • Annual: Less than $100/quarter withheld

Reciprocity: Important note: Missouri does not have reciprocal agreements with any other states. Employers must withhold for Missouri if work is performed in Missouri, even if employee lives in another state.

Non-Missouri Employers: Out-of-state employers with Missouri employees may need to:

  • Register for Missouri withholding
  • File Missouri withholding returns
  • May be able to reduce Missouri withholding by amount withheld for home state (for multi-state situations)

Source: Missouri Department of Revenue – https://dor.mo.gov/taxation/business/withholding.html

Local Earnings Taxes

Missouri has local earnings taxes in two major cities:

Kansas City, Missouri:

St. Louis, Missouri:

Remote Work Considerations:

According to guidance from these cities:

  • Tax generally based on where work is performed
  • Remote workers working from home outside city limits may not owe city earnings tax
  • Specific circumstances may vary
  • Employers should consult with city revenue departments

Note: Local tax laws can be complex and change over time. Verify current requirements with local tax authorities.

Multi-State Tax Considerations

Remote work arrangements may create multi-state tax complications:

Potential Issues:

  • Multiple state income taxes
  • Withholding in multiple states
  • Tax credits for taxes paid to other states
  • Nexus for employer (creating tax obligations in multiple states)
  • Reciprocity agreements (Missouri has none)

Convenience of Employer Rule: Some states (not Missouri) impose tax on remote work performed for their employers even if performed outside the state. Missouri does not have this rule, but employees working for employers in states with this rule may have obligations.

Recommendations:

  • Track work location carefully
  • Maintain detailed records
  • Consult tax professional familiar with multi-state taxation
  • Consider state-specific tax requirements

Self-Employment Tax (For Independent Contractors)

If classified as independent contractor rather than employee:

Federal Self-Employment Tax:

  • 15.3% on net self-employment income (Social Security and Medicare)
  • Paid via quarterly estimated tax payments
  • Form 1040-ES for estimated taxes
  • File Schedule SE with annual return

Missouri Tax Obligations:

  • Must file Missouri estimated tax payments if expecting to owe $100+ in Missouri tax
  • Use Form MO-1040ES for estimated payments

Note: Proper classification as independent contractor vs. employee is critical. See classification section in Part 1.

Tax Resources

Missouri Department of Revenue:

  • Website: https://dor.mo.gov/
  • Phone: 573-751-3505
  • Individual Income Tax: 573-751-3505
  • Withholding Tax: 573-751-3505

Internal Revenue Service:

Professional Assistance:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax Attorney

Remote Work Considerations

Employer Considerations for Remote Work Programs

Policy Development:

When developing remote work policies, employers may wish to consider:

Eligibility:

  • Which positions are suitable for remote work
  • Performance standards for remote workers
  • Application and approval process
  • Trial periods and evaluations

Work Location:

  • Where employees may work remotely (home, coworking spaces, other locations)
  • Geographic limitations (same state, any state, international)
  • Temporary vs. permanent remote arrangements
  • Notification requirements for location changes

Equipment and Technology:

  • What equipment employer will provide
  • Employee responsibility for home office setup
  • Technology requirements and support
  • Cybersecurity measures
  • Data protection protocols

Communication and Availability:

  • Expected work hours and availability
  • Response time expectations
  • Meeting attendance requirements
  • Communication tools and platforms

Performance Management:

  • How performance will be measured and evaluated
  • Goal-setting and tracking
  • Regular check-ins and feedback
  • Documentation requirements

Expenses and Reimbursement:

  • What expenses, if any, will be reimbursed
  • Internet and phone costs
  • Office supplies
  • Equipment maintenance

Note: These are considerations only, not legal requirements. Employers should develop policies appropriate for their business and consult legal counsel.

Employee Considerations for Remote Work

Home Office Setup:

Employees working remotely may want to consider:

  • Dedicated workspace
  • Ergonomic furniture and equipment
  • Proper lighting
  • Reliable internet connection
  • Appropriate technology

Work-Life Balance:

  • Setting boundaries between work and personal life
  • Establishing routine and schedule
  • Taking regular breaks
  • Avoiding overwork

Communication:

  • Staying connected with supervisor and team
  • Responding to messages promptly
  • Attending meetings and calls
  • Being proactive about communication

Professional Development:

  • Seeking training and development opportunities
  • Maintaining visibility with management
  • Networking with colleagues
  • Building and maintaining relationships

Legal and Compliance Considerations

When establishing or participating in remote work arrangements:

For Employers:

May want to consider consulting with legal counsel regarding:

  • Worker classification (employee vs. contractor)
  • Wage and hour compliance
  • Workers’ compensation coverage
  • State tax obligations in multiple states
  • Local tax obligations
  • Data security and privacy
  • Employment law compliance in employee’s work location
  • Insurance coverage implications
  • ADA accommodation issues
  • FMLA and leave administration
  • Immigration compliance for international remote workers

For Employees:

May want to consider:

  • Understanding employment status and rights
  • Tax obligations in work location
  • Impact on benefits eligibility
  • Home office insurance needs
  • Understanding employer policies and expectations
  • Documentation of work location and hours
  • Reporting work-related expenses

Multi-State Remote Work Challenges

When employees work remotely from states other than where employer is located:

Potential Complexities:

  • Multiple state tax obligations
  • Multiple state employment law requirements
  • Workers’ compensation coverage across states
  • Unemployment insurance implications
  • Different minimum wage requirements
  • Various leave laws
  • Local ordinance compliance

Recommendations:

  • Employers: Develop clear policies about geographic work locations
  • Employers: Consult legal counsel before allowing work in new states
  • Employers: Consider limiting remote work to certain states
  • Employees: Notify employer before relocating or working from different state
  • Both: Maintain clear records of work locations
  • Both: Consult professionals about multi-state implications

Technology and Cybersecurity

Data Protection: Remote work arrangements should address:

  • Secure network connections (VPN)
  • Password protection and authentication
  • Encryption of sensitive data
  • Secure file sharing protocols
  • Device security measures
  • Company data on personal devices
  • Incident reporting procedures

Best Practices:

  • Use employer-provided equipment when possible
  • Keep software and security patches updated
  • Avoid public WiFi for work activities
  • Lock devices when not in use
  • Back up important data
  • Report security incidents immediately

Compliance: Consider applicable data privacy laws and industry-specific security requirements.

Insurance Considerations

For Employers:

  • Workers’ compensation: Ensure remote workers are covered
  • General liability: Review coverage for remote work arrangements
  • Cyber liability: Protect against data breaches
  • Professional liability: May be needed depending on nature of work

For Employees:

  • Homeowners/renters insurance: May not cover business use
  • Equipment insurance: For employer-provided equipment
  • Liability insurance: If conducting business from home

Recommendation: Both employers and employees should review insurance coverage with insurance professionals when establishing remote work arrangements.

Resources

Missouri State Agencies

Missouri Department of Labor and Industrial Relations

  • Main Website: https://labor.mo.gov/
  • Phone: 573-751-4091
  • Address: 421 East Dunklin Street, P.O. Box 504, Jefferson City, MO 65102

Division of Employment Security

Division of Workers’ Compensation

Division of Labor Standards

Missouri Commission on Human Rights

Missouri Department of Revenue

Federal Agencies

U.S. Department of Labor

Equal Employment Opportunity Commission (EEOC)

Occupational Safety and Health Administration (OSHA)

Internal Revenue Service

Legal Assistance

Missouri Bar Association

Legal Aid Organizations:

Professional Organizations

Society for Human Resource Management (SHRM)

Missouri Chamber of Commerce and Industry

Frequently Asked Questions

General Employment Questions

Q: Does Missouri have “at-will” employment?

Generally yes. According to Missouri law, Missouri follows the employment-at-will doctrine. This generally means:

  • Either employer or employee can terminate employment at any time
  • Termination can be for any reason or no reason
  • Subject to important exceptions including:
    • Illegal discrimination
    • Retaliation for exercising legal rights
    • Violation of public policy
    • Employment contracts that specify terms

However, specific situations vary. Employees who believe they were wrongfully terminated should consult an employment attorney.

Q: Can my employer require me to work remotely?

Generally yes, absent contractual obligations to the contrary. Employers typically have discretion to:

  • Establish work location requirements
  • Change work arrangements
  • Require remote work or return to office

However, considerations may include:

  • Employment agreements or contracts
  • Collective bargaining agreements
  • Reasonable accommodation obligations under ADA
  • Other specific circumstances

Employees with concerns should review employment agreements and consult legal counsel if needed.

Q: Can my employer require me to return to office after working remotely?

Generally yes. Unless there is:

  • Contractual guarantee of remote work
  • Collective bargaining agreement protection
  • ADA reasonable accommodation situation
  • Other specific legal protection

Employers typically have discretion to change work location requirements. However, changes should be implemented consistently and without discrimination.

Wage and Hour Questions

Q: If I work remotely for a Missouri employer but live in another state, which state’s minimum wage applies?

Generally, minimum wage is based on where work is physically performed. So:

  • If you work from home in another state, that state’s minimum wage typically applies
  • If you work from Missouri location, Missouri minimum wage applies
  • When work is performed in multiple states, wages may need to be allocated

However, specific situations can be complex. Consult Missouri Department of Labor, the other state’s labor department, and potentially legal counsel.

Q: Does my employer have to pay me for time spent responding to emails or messages after hours?

It depends. According to federal FLSA principles:

  • Non-exempt employees: Time spent working, including responding to emails, is generally compensable
  • Exempt employees: Generally not entitled to overtime, so after-hours work may not change compensation

Factors that may be relevant:

  • Whether work is required or voluntary
  • Amount of time spent
  • Employer expectations
  • Whether activities are “de minimis”

Employers should have clear policies about after-hours work expectations. Employees with questions should consult employer policies and, if needed, Department of Labor or legal counsel.

Q: Are breaks required in Missouri?

For adult employees: Missouri law does not require meal or rest breaks. Whether breaks are provided is at employer’s discretion or as specified in employment agreements.

For minor employees: Some breaks are required in entertainment industry (meal break after 5.5 hours; 15-minute break every 2 hours).

If employer provides breaks:

  • Short breaks (under 20 minutes) are generally paid under federal law
  • Meal periods (30+ minutes) may be unpaid if employee is completely relieved of duties

Remote Work Specific Questions

Q: Am I covered by workers’ compensation if injured while working from home?

Maybe. Coverage depends on many factors:

  • Whether injury “arose out of and in the course of employment”
  • What you were doing when injured
  • Where injury occurred
  • When injury occurred
  • Nature of injury
  • Many other factors

General principle: Work-related injuries may be covered, but each case is fact-specific.

What to do if injured:

  1. Report to employer immediately
  2. Seek medical attention
  3. Let employer/insurance carrier make coverage determination
  4. Consult workers’ comp attorney if claim is disputed

Do not assume coverage or non-coverage without official determination.

Q: Can my employer monitor my work activity while I work remotely?

Generally yes, with some limitations:

  • Employers typically have right to monitor work activities
  • May include email, computer activity, productivity tracking
  • Should be disclosed to employees
  • Must comply with privacy laws and company policies

However:

  • Some states have specific privacy laws (Missouri has limited statutes in this area)
  • Monitoring should be work-related
  • Recording calls may have consent requirements
  • Reasonable privacy expectations may exist for personal communications

Employees should:

  • Review employer policies on monitoring
  • Use work devices for work purposes
  • Understand employer’s monitoring capabilities
  • Keep personal activities on personal devices

Q: Can I work remotely from another state without telling my employer?

This is generally not advisable. Working from another state without employer knowledge can create:

  • Tax compliance issues for employer
  • Workers’ compensation coverage questions
  • Potential employment law violations
  • Insurance coverage problems
  • Company policy violations

Best practice:

  • Always notify employer before working from different state
  • Get approval in writing
  • Understand implications
  • Follow company policies

Benefits Questions

Q: Do I qualify for unemployment if I quit because my employer won’t let me work remotely?

Generally, unemployment benefits are available to workers who are unemployed through no fault of their own. Voluntarily quitting typically makes someone ineligible unless there is “good cause.”

Whether refusing remote work option or requiring return to office constitutes “good cause” depends on specific circumstances:

  • Reason for wanting to work remotely
  • Any health or disability issues
  • Transportation issues
  • Childcare issues
  • Other specific factors

Contact Missouri Division of Employment Security for guidance on specific situations: 800-320-2519

Q: If I work remotely, am I still eligible for FMLA leave?

If you meet FMLA eligibility requirements, yes. FMLA applies to remote workers who:

  • Work for covered employer (50+ employees within 75 miles of worksite)
  • Have worked 12+ months for employer
  • Have worked 1,250+ hours in past 12 months

For remote workers, “worksite” is generally the office to which you report or are assigned.

Classification Questions

Q: If I work from home, does that make me an independent contractor?

No. Work location does not determine whether you are an employee or independent contractor. Classification depends on factors such as:

  • Degree of control over work
  • Financial arrangements
  • Relationship between parties
  • Many other factors (see Classification section in Part 1)

Working from home does not automatically change classification. Misclassification can have serious consequences. Consult legal counsel if classification is unclear.

Q: Can my employer change me from employee to independent contractor because I work remotely?

Classification should be based on the actual relationship, not employer preference or work location. Simply calling someone an independent contractor does not make them one.

If relationship has characteristics of employment (control, economic dependence, etc.), worker may be employee regardless of title.

Workers who believe they have been misclassified should:

  • Review classification factors (see Part 1)
  • Consult Missouri Division of Employment Security: 573-751-1099
  • Consider consulting employment attorney
  • May file complaint if misclassified

Discrimination Questions

Q: Can my employer deny me remote work while allowing others to work remotely?

It depends. Employers generally have discretion to determine which positions can be performed remotely and which cannot. However:

Decisions must not be discriminatory:

  • Cannot deny remote work based on protected characteristics (race, sex, age, disability, etc.)
  • Must be based on legitimate business reasons
  • Should be applied consistently

Disability considerations:

  • Remote work may be required as reasonable accommodation under ADA in some circumstances
  • Interactive process required to evaluate accommodation requests

If you believe remote work denial was discriminatory:

  • Document circumstances
  • Follow employer’s complaint procedures
  • Contact Missouri Commission on Human Rights: 877-781-4236
  • May consult employment attorney

Tax Questions

Q: If I live in Missouri but work remotely for a company in another state, where do I pay income tax?

This can be complex:

Generally:

  • Missouri residents pay Missouri income tax on all income regardless of source
  • You may also owe tax to state where work is performed
  • Missouri provides credit for taxes paid to other states on income earned there

Specific answer depends on:

  • Where you physically perform work
  • Other state’s tax rules
  • Whether other state has “convenience of employer” rule
  • Other factors

Recommendation: Consult tax professional familiar with multi-state taxation.

Q: Does my employer have to withhold Missouri taxes if I work remotely in Missouri for an out-of-state employer?

Generally yes. According to Missouri Department of Revenue:

  • Work performed in Missouri is subject to Missouri withholding
  • Out-of-state employer should register for Missouri withholding
  • Withhold based on Missouri tax rates

Employer should consult Missouri Department of Revenue: 573-751-3505

Practical Questions

Q: Who pays for my internet and home office equipment if I work remotely?

This depends on employer policy:

  • Missouri law does not require employers to reimburse remote work expenses
  • Some employers provide or reimburse equipment, internet, etc.
  • Others expect employees to provide own equipment
  • Federal law prohibits expenses that would bring employee below minimum wage

Best practice:

  • Clarify expectations before accepting remote position
  • Get agreements in writing
  • Keep records of work-related expenses
  • Understand employer reimbursement policies

Q: Can I deduct home office expenses on my taxes?

For most employees: No. The Tax Cuts and Jobs Act eliminated home office deduction for employees for tax years 2018-2025.

For self-employed/independent contractors: May be able to deduct home office expenses if meet requirements. Consult tax professional.

Note: Tax laws change. Verify current rules with IRS or tax professional.

Q: What happens if I move to another state while working remotely?

Notify your employer immediately. Moving to another state can affect:

  • Your tax obligations
  • Employer’s tax obligations
  • Workers’ compensation coverage
  • Compliance with other state’s employment laws
  • Company policies

Many employers have policies about where employees can work remotely. Some may not allow work from certain states due to compliance complexity.

Before moving:

  • Check employer policy
  • Get approval in writing
  • Understand tax implications
  • Consult tax and legal professionals

Others

Kansas
Illinois
Iowa
Arkansas
Oklahoma

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.