Missouri’s new minimum wage law could be watered down by state lawmakers.
Several business groups are pushing back on the new law, including the Missouri Chamber of Commerce, Missouri Restaurant Association, and Associated Industries of Missouri. Their fight is on two fronts – in the legislature and the courtroom.
The law was approved by a majority of Missouri voters last November. It raises the minimum wage to $15 an hour by 2026 with required paid sick leave for workers.
The state House Commerce Committee could vote soon on a bill sponsored by Rep. Carolyn Caton, R-Blue Springs, which would exclude the minimum wage for workers under 20 years of age.
“We want to pay people well but we need to do so in a manner that is going to protect our small businesses so that we can continue to offer grocery stores and retail services in areas that could possibly be harmed. So it is a balance, she told the committee.
Berry, a lobbyist for Proposition A, said 57% of Missouri voters approved the wage increase.
“If you want to target businesses that are 50 employees or less, that’s about 96% of the businesses across this state. Eighty-six percent of the workers in this state, work in those businesses,” he testified during a public hearing on the bill.
The House committee could also vote soon on a bill sponsored by Rep. Scott Miller, R-St. Charles. His bill would exclude the minimum wage for workers under 21 and businesses with 49 or fewer employees.
Speaking on behalf of the Missouri Grocers Association, Dan Shaul said a $15 hourly wage will eat into the 2% profit margins of many grocery stores.
“The grocery store is not a luxury,” he said. “It could very easily, and I mean this with all sincerity, become a food desert if Prop A goes into effect the way it is written today. Welcome to Dollar General being your only store in Steelville.”
Berry said the proposition will motivate employees to “show up.”
“Aside from the fact that we are an at-will state, both Governor Kehoe and Governor Parson raised the minimum wage of state employees because they were unable to retain employees,”
If a majority of committee members vote in favor of the bills, the legislation would advance to a second House committee for a mostly routine vote.
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