The Ultimate Guide to Mississippi Minimum Wage Laws & Regulations

Understanding wage laws is a cornerstone of running a compliant business. For employers in Mississippi, keeping up with federal regulations is non-negotiable since the state lacks its own minimum wage law.

Mississippi’s reliance on the federal minimum wage has shaped its economic landscape for over a decade. Employers have adhered to a consistent standard, while workers have seen no state-mandated changes to their hourly pay.

The structure of minimum wage laws in Mississippi directly impacts hiring practices, payroll systems, and compliance measures. Let's break it all down.

Mississippi Minimum Wage Overview

• Mississippi does not enforce a state-specific minimum wage, defaulting to the federal rate of $7.25 per hour as of January 2025.

• Employers in Mississippi have followed the federal minimum wage since its last increase in 2009, with no state-level adjustments to account for inflation or cost-of-living changes.

• Any future increases to the federal minimum wage will automatically apply to Mississippi employers, as the state has no separate legislation governing minimum wage rates.

Tipped Wage Requirements

In Mississippi, the federal tipped minimum wage standard is $2.13 per hour. Employers must follow this guideline when compensating employees who regularly earn tips. However, paying $2.13 per hour alone is not enough. Employers are required to ensure that, when combined with tips, an employee's total hourly earnings equal at least $7.25. If tips fall short, the employer must pay the difference to meet the federal minimum wage.

Compliance with tip credit rules under the federal Fair Labor Standards Act (FLSA) is mandatory. Employers using the tip credit need to meet specific conditions:

• Tip Pooling Rules: Employers may require tip pooling, but only among employees who customarily receive tips, such as servers and bartenders. Federal law prohibits managers and supervisors from participating in tip pools.

• Ownership of Tips: Employees must retain full ownership of earned tips unless participating in a lawful tip pool. Employers cannot collect or withhold any portion of tips outside of these arrangements.

• Written Notice of Tip Credit: Before applying the tip credit, employers must provide written notice to employees explaining how the credit works. Without this notification, employers must pay the full federal minimum wage of $7.25 per hour, regardless of tips earned.

Employers should carefully track all tipped employee earnings, including both direct wages and tip amounts, to ensure compliance. Regular audits of payroll records, tip distribution, and wage calculations can help avoid errors. Non-compliance can lead to financial penalties and legal consequences. Clear documentation provides a safeguard against disputes and helps maintain compliance with wage laws.

Overtime Pay in Mississippi

In Mississippi, non-exempt employees must receive overtime pay for all hours worked beyond 40 in a single workweek. The overtime rate is set at 1.5 times the employee's standard hourly pay. This ensures fair compensation for extended work hours and aligns with federal wage regulations.

Certain employees are exempt from overtime requirements under the FLSA. These exemptions apply to specific job categories, including executives, administrative professionals, and employees in learned professions. Exemptions are determined based on job duties and salary thresholds, not job titles. For example:

• Executive Employees: Must lead the management of the business or a department, oversee at least two other employees, and have significant input into hiring, firing, or other employment decisions.

• Administrative Employees: Must handle non-manual tasks related to management or general business operations and make independent decisions on matters of significance.

• Professional Employees: Must perform work requiring advanced knowledge in a specialized field, typically gained through prolonged education or training.

Misclassifying employees as exempt can result in legal and financial consequences. Employers should regularly review job descriptions and actual duties against FLSA criteria to confirm classifications are correct.

Timekeeping practices must precisely document all hours worked for non-exempt employees. Employers should track:

1. Daily and Weekly Hours: Record start times, end times, and total hours worked each day and week.

2. Overtime Hours: Log any time exceeding 40 hours in a workweek.

3. Pay Rates: Maintain records showing the regular hourly rate and the adjusted overtime rate applied to additional hours.

Systems for tracking time, whether electronic or manual, must be reliable and accurate. Employers should also conduct regular audits of time records to verify compliance with wage laws and address errors promptly. Clear and detailed records not only ensure compliance but also help resolve disputes if they arise.

Payment and Final Paycheck Rules in Mississippi

Mississippi does not enforce specific laws regarding how often employees must be paid. Employers should follow federal guidelines, which require consistent and timely payment schedules. Setting a regular pay cycle—whether weekly, bi-weekly, or monthly—helps ensure compliance and reduces payroll-related confusion. Missing pay deadlines can quickly lead to disputes, so sticking to a predictable schedule is non-negotiable.

Key Exemptions and Special Rules

Not every employee in Mississippi qualifies for minimum wage or overtime protections. Specific exemptions outlined by the FLSA apply to distinct roles, industries, and pay structures. Employers must understand these rules to avoid misclassification.

• Commissioned Sales Employees: Retail and service employees who earn more than 50% of their income from commissions and make at least 1.5 times the federal minimum wage for every hour worked can be exempt from overtime pay. For example, a retail associate earning commissions on top of base pay may qualify under this exemption if total earnings meet the threshold.

• Agricultural Laborers: Workers involved in planting, harvesting, or raising livestock are often exempt from both minimum wage and overtime pay. Tasks such as operating farm machinery or caring for animals usually fall within this exemption. However, workers packing or processing goods for distribution may not qualify, depending on the nature of their duties.

• Seasonal and Recreational Employees: Employees at businesses like summer camps or amusement parks are often exempt. The establishment must operate for no more than seven months annually or show that its off-season revenue is less than one-third of its peak season revenue. For instance, a water park open only during the summer could classify lifeguards under this exemption.

Executive, Administrative, and Professional Exemptions

Certain salaried employees performing high-level duties can be classified as exempt. To qualify for executive, administrative, or professional exemptions, both salary and job function must meet FLSA criteria.

1. Salary Basis: Employees must earn a fixed salary of no less than $684 per week. Hourly workers are not eligible for these exemptions, regardless of their responsibilities.

2. Job Duties:

3. Executive Employees: Lead a department or business unit, regularly manage at least two full-time employees, and make decisions on hiring, firing, or promotions.

4. Administrative Employees: Perform non-manual work tied to business operations, such as financial analysis or HR management. These roles require regular decision-making on significant business matters.

5. Professional Employees: Work in specialized fields requiring advanced education, such as engineering, law, or medicine. This exemption applies to jobs where advanced knowledge is essential to daily responsibilities.

Reviewing Federal Guidelines

Federal guidelines provide detailed criteria for determining exemption status. Misclassifying employees leads to serious consequences, including back pay and penalties. Employers should regularly evaluate job descriptions, confirm they reflect actual duties, and ensure salaries align with FLSA thresholds. Documentation of employee classifications and periodic audits can help maintain compliance and resolve disputes efficiently.

Frequently Asked Questions

1. What states have a $15 minimum wage?
   States such as California, Massachusetts, and New York have implemented minimum wage laws requiring hourly pay of $15 or more. Several other states in the Northeast, including Connecticut and Maryland, have also reached or are on track to reach $15 per hour through scheduled increases. Mississippi, on the other hand, does not have a state minimum wage and defaults to the federal rate of $7.25 per hour. No increases at the state level are planned.

2. What was the Mississippi minimum wage in 2024?
   The minimum wage in Mississippi remained $7.25 per hour in 2024. This rate has not changed since 2009, when the federal minimum wage was last increased. Because Mississippi does not enforce a state-specific minimum wage, any adjustments to employee pay are tied directly to federal updates. Without Congressional action to raise the federal rate, employers in Mississippi are not required to implement any state-mandated increases.

3. Is it legal to work 8 hours without a break in Mississippi?
   Working an 8-hour shift without a break is legal in Mississippi. The state does not require employers to provide any meal or rest breaks during a workday. Federal labor laws also do not mandate breaks, but if an employer offers short breaks under 20 minutes, those breaks must be compensated as paid working time. Unpaid meal periods lasting 30 minutes or longer are only permissible if the employee is completely free of all duties during the break. Employers deciding to offer breaks should clearly communicate expectations to employees and ensure compliance with federal compensation rules.

4. What are the payroll laws in Mississippi?
   Mississippi does not dictate specific rules on how often employees must be paid or the methods employers use to process payroll. However, federal law requires timely and accurate payment of wages. Employers should establish consistent pay schedules, such as weekly, bi-weekly, or monthly, to avoid any disputes over unpaid wages.

Using reliable payroll systems to track work hours, calculate pay, and generate pay stubs can help employers meet compliance requirements while reducing the risk of errors. Regular audits of payroll records ensure accuracy and demonstrate adherence to wage laws.

Navigating the complexities of wage laws and payroll compliance can be daunting for small businesses. At GoCo, we understand the challenges you face and are here to help. Book a demo with us today to discover how our user-friendly platform can simplify your HR processes, ensure compliance, and give you peace of mind.