LABOR LAW NEWS

Missouri Voters Pass New Minimum Wage Increase

By Kelsey Basten

Published on November 8, 2018

Missouri voters turned to the polls Nov. 6 to pass Proposition B: $12 Minimum Wage Initiative. The new law goes into effect Jan. 1, 2019, and will raise the minimum wage from $7.85 to $8.60, increasing $0.85 each year until the rate reaches $12 in 2023.

The increases are as follows:

  • 2020: $9.45
  • 2021: $10.30
  • 2022: $11.25
  • 2023: $12

After 2023, the rate will be indexed and increase according to the Consumer Price Index (CPI).

State and Local Minimum Wage Activity

Prior to this decision, Missouri’s state minimum wage increased annually due to indexing. The Department of Commerce would announce the next year’s rate at the end of the previous year. Under this law, retail and service employers with an annual gross income less than $500,000 were not required to pay the state minimum wage rate. Also, tipped employees were paid half of the state minimum wage rate or $3.93.

St. Louis and Kansas City previously passed their own minimum wage laws, but were turned down by the Missouri legislature’s minimum wage preemption law, banning local jurisdictions from establishing a minimum wage rate higher than the state’s.

Right-to-Work

Also, Proposition B comes after Missouri voters decided against Senate Bill 19 Aug. 7, 2018, which would have made Missouri the 28th state to pass a right-to-work law.

Senate Bill 19 was originally passed by the Missouri legislature Feb. 2, 2017, and signed into law by Gov. Eric Greitens quickly after. However, Missouri’s labor organizations and supporters were able to push the bill to the primary election ballot Aug. 7, 2018, where it was not passed.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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