Commission Pay Laws in Missouri: Your Rights as a Commission Worker

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, establishes the federal minimum wage floor of $7.25 per hour. This applies to all covered employees, including commissioned workers. Under federal law, compensation structures combining commission with base wages must ensure that total earnings meet the minimum wage requirement for every hour worked. The FLSA does not prohibit commission-based pay models but requires that the resulting effective hourly rate not fall below the federal minimum.

The Equal Employment Opportunity Commission (EEOC) enforces federal wage and hour protections. The U.S. Department of Labor (DOL) Wage and Hour Division investigates violations of minimum wage requirements. Employers are not required to have written commission agreements under federal law, though documentation is strongly recommended to prevent disputes. The FLSA permits employers to deduct certain items from wages, but deductions cannot reduce pay below the legal minimum wage. Violation of minimum wage requirements can result in liability for back wages, liquidated damages equal to back wages owed, and attorney fees. Commission employees covered by the FLSA have three years to file a wage lawsuit for unpaid compensation.

Missouri Revised Statutes § 290.505 establishes that all employees, including commissioned workers, must receive at least the state minimum wage of $11.15 per hour (effective 2024) for all hours worked. This is significantly higher than the federal minimum wage of $7.25, meaning Missouri employers must follow the state standard.

Missouri law is stronger than federal law in this regard because it requires a higher minimum wage floor and provides additional wage protections through § 290.525, which regulates wage payment timing and prohibited deductions. Under Missouri law, employers must pay employees all earned wages and commissions by the next regular payday or within the timeframe specified in a written agreement between employer and employee.

All employers with employees working in Missouri are covered by state minimum wage laws, regardless of size. There is no small-employer exemption in Missouri wage and hour law. Missouri law does not explicitly require written commission agreements, but doing so is critical to establishing the terms of compensation and protecting both parties from disputes. Unique to Missouri is the emphasis on preventing illegal wage deductions: employers cannot deduct expenses, costs, or shortages from commission wages if doing so would reduce the employee's pay below minimum wage for hours worked.

Missouri remedies for wage violations include civil court claims for unpaid wages, pre-judgment interest, and reasonable attorney fees. Employees may file complaints with the Missouri Department of Labor and Industrial Relations (DOLIR), which can investigate and enforce wage payment laws. Retaliation against an employee for filing a wage complaint is prohibited.

Missouri law contains limited exceptions to commission pay protections. Independent contractors are not covered by minimum wage requirements; however, misclassification as an independent contractor when the worker is actually an employee is unlawful and does not shield the employer from minimum wage liability.

Unemployed workers and those not 'employees' under Missouri law (such as unpaid volunteers) are not covered. However, courts interpret 'employee' broadly in Missouri, and the burden falls on the employer to prove non-employee status.

Missouri allows employers to deduct certain items from wages, including taxes, court-ordered garnishments, and union dues, but deductions cannot reduce total compensation below minimum wage for hours worked. Deductions for uniform costs, breakage, cash register shortages, or customer refunds are permitted only if they do not result in sub-minimum-wage compensation.

Some employees in agricultural work or domestic service may have different protections, though agricultural workers in Missouri still receive minimum wage protections under most circumstances. Tipped employees are not covered by a separate tipped minimum wage in Missouri; they must still receive the full $11.15 minimum wage (tips do not offset wage obligations).

Employers are not required to provide commission as an employee benefit; however, once a commission structure is established and wages are earned, payment becomes mandatory. An employer cannot unilaterally cancel commissions owed for work already performed. Written agreements that clearly specify when commissions are 'earned' (point of sale, customer payment, contract execution, etc.) may protect employers from disputes, but ambiguous language is interpreted against the employer.

Step 1: Document all evidence of commission owed. Keep records of sales contracts, commission agreement terms, email communications about compensation, pay stubs showing commission amounts, and any written policies regarding commission calculation. Maintain a personal log documenting when work was completed, services provided, and the basis for commission eligibility. Take screenshots or copies of company commission policies, sales systems, or spreadsheets showing commission tracking.

Step 2: File an internal complaint with your employer. Send a written email or letter to your manager, HR department, or owner specifically requesting payment of unpaid commissions. Reference the written agreement or company policy that obligates the employer to pay. State the specific dollar amount owed, the period covered, and the deadline by which you expect payment (e.g., 'next regular payday'). Keep a copy of this communication. Request a written response. Wait 5-10 business days for a response. If the employer refuses, acknowledges the debt but refuses payment, or does not respond, proceed to Step 3.

Step 3: File a complaint with the Missouri Department of Labor and Industrial Relations (DOLIR). Visit the official website at labor.mo.gov. Locate the 'File a Wage Claim' or 'Wage and Hour Complaint' section. You may file online, by mail, or by phone at 573-751-3976. Provide your name, contact information, employer name and address, dates of employment, description of the commission structure, amounts owed, and copies of the written agreement if available. Include documentation from Step 1. The deadline for filing is generally 360 days from the date wages were due, though filing sooner is advisable. Note that DOLIR investigations can take several months.

Step 4: Expect the DOLIR investigation process to take 30-90 days or longer. DOLIR will contact your employer and request records, payroll documentation, and the written commission agreement. You may be asked to provide a written statement or participate in a phone interview. DOLIR will determine whether the employer violated minimum wage or wage payment laws. If a violation is found, DOLIR may issue a citation requiring payment of back wages. However, DOLIR lacks authority to award damages beyond unpaid wages; it can only enforce payment. Your employer has the right to dispute the finding.

Step 5: Consult an employment attorney if: (1) the amount owed exceeds $5,000, (2) your employer retaliates against you for filing a complaint, (3) DOLIR's investigation is delayed or incomplete, or (4) the employer refuses to comply with a DOLIR citation. File a civil lawsuit in Missouri state court (district court in your county) for unpaid wages, pre-judgment interest, and attorney fees under Missouri contract law or wage statutes. Missouri allows recovery of reasonable attorney fees in wage disputes, making legal representation economically viable for moderate amounts owed. Consult an employment lawyer licensed in Missouri who specializes in wage and hour disputes.