The Missouri Department of Labor announced today that Missouri’s minimum wage will increase again. Effective Jan. 1, all businesses will be required to pay a minimum $7.50 hourly rate, except retail and service businesses whose annual gross sales are less than $500,000. Currently the minimum wage in Missouri is $7.35.
That will Missouri’s minimum wage 25 cents above the federal minimum wage and makes our state’s minimum wages higher than many other states in the nation. Missouri’s minimum wage is higher than all neighboring states, but Illinois.
Missouri’s minimum wage law was changed in 2006 by a vote of the people. The law included an automatic escalator based on an increase in the cost of living as measured by the previous year’s Consumer Price Index.
“As the minimum wage increases, the ability of employers to continue to employ workers is damaged – hitting entry level jobs especially hard,” said Missouri Chamber President Dan Mehan. “It causes uncertainty and positions Missouri to raise its minimum wage to uncompetitive levels. We opposed the change to the law in 2006 and maintain that wages should be set by market demand, not bureaucrats.”