KC Citywide Minimum Wage Stalls – For Now

The Kansas City Council voted to establish a citywide minimum wage and to incrementally increase it to $13 per hour by 2020, but voters may get a say.

 

Although the Kansas City (Missouri) Council voted 12-1 to establish a citywide minimum wage of $8.50 per hour and to incrementally increase it to $13 per hour by 2020, the law is on hold.

The law, which was to take effect August 24, 2015, may be replaced by the results of a referendum, which would allow voters to decide whether to implement a citywide minimum wage. Petitioners have until August 25 to submit the requisite 3,417 signatures to place the Kansas City Minimum Wage on the ballot.

If the original ordinance (150217) stands, it would require employers with more than 15 workers to offer the new rate of $8.50 per hour – an 11 percent increase over the State of Missouri’s minimum wage rate of $7.65. A business with two sites, one in Kansas City and one outside of Kansas City, with more than 15 total employees, must pay the employees working at the Kansas City site the City’s minimum wage.

Kansas City Minimum Wage Schedule

If the Kansas City minimum wage survives the referendum challenge, the citywide minimum wage rate would increase in stages to $13 per hour by January 1, 2020, and then be indexed to the Consumer Price Index (CPI) to automatically adjust for inflation.

DATE KC Minimum Wage Rate
Aug. 24, 2015 $8.50
Jan. 1, 2017 $9.82
Jan. 1, 2018 $10.96
Jan. 1, 2019 $11.98
Jan. 1, 2020 $13.00
2021 and beyond Indexed for inflation

Kansas City Tipped Minimum Wage Rate

Workers who earn tips would still be paid at least 50 percent of the minimum wage established by the State of Missouri and are therefore not impacted by the Kansas City citywide minimum wage ordinance in its current form.

Kansas City Minimum Wage Exemptions

The ordinance (if successful) would not apply to: workers under the age of 18; government employees (except City workers); apprentices; employees of volunteer or charitable organizations; or interns working for academic credit.

Kansas City Minimum Wage Posting Requirements

If the ordinance stands, employers in Kansas City must display a notice in a prominent location as of April 1, 2016. However, it is unclear as to whether the City is issuing a formal “poster” or if a business may comply simply by creating its own notice containing sections 38-202, 38-203 and 38-204 of the ordinance. GovDocs is monitoring the City and we anticipate more information later in August.

 

 

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