Missouri business community disagrees on proposal to raise minimum wage

SPRINGFIELD, Mo. (KY3)—Missouri’s top business association is now opposing a measure to increase the minimum wage.

In less than six weeks, Missourians will decide whether or not to raise the minimum wage from $12.30 an hour to $15 an hour by 2026. Then, starting in 2027, minimum wage would be adjusted each year based on inflation and cost of living. In addition to raising the minimum wage, Proposition A also requires businesses to provide employees with paid sick leave

The proposition will appear on the November ballot reading:

“Official Ballot Title:

Do you want to amend Missouri law to:

• increase minimum wage January 1, 2025, to $13.75 per hour, increasing $1.25 per hour each year until 2026, when the minimum wage would be $15.00 per hour;
• adjust minimum wage based on changes in the Consumer Price Index each January beginning in 2027;
• require all employers to provide one hour of paid sick leave for every thirty hours worked;
• allow the Department of Labor and Industrial Relations to provide oversight and enforcement; and
• exempt governmental entities, political subdivisions, school districts and education institutions?

State governmental entities estimate one-time costs ranging from $0 to $53,000, and ongoing costs ranging from $0 to at least $256,000 per year by 2027. State and local government tax revenue could change by an unknown annual amount depending on business decisions.

Fair Ballot Language:

• A “yes” vote will amend Missouri statutes to increase the state minimum wage beginning January 1, 2025 to $13.75 per hour and increase the hourly rate $1.25, to $15.00 per hour beginning January 2026. Annually the minimum wage will be adjusted based on the Consumer Price Index.  The law will require employers with fifteen or more employees to provide one hour of paid sick leave for every thirty hours worked. The amendment will exempt governmental entities, political subdivisions, school districts and education institutions from the minimum wage increase.
• A “no” vote will not amend Missouri law to make changes to the state minimum wage law.

If passed, this measure will have no impact on taxes. Read the full amendment that would become Missouri law here.

Kara Corches, president of the Missouri Chamber of Commerce and Industry, said this could be bad for business. Missouri’s minimum wage is already higher than surrounding states — and Corches says raising it further could drive businesses out of the state.

“This could increase the cost of doing business and drive up costs, not just to businesses, but to consumers as well, who are already fighting the effects of record inflation,” Corches said. “We generally oppose any new mandate on businesses.”

Mike Draper owns the tee-shirt print shop RAYGUN in Kansas City. While increasing the minimum wage would not affect how much he pays employees — because he already pays more — Draper thinks it means fewer people taking advantage of federal assistance programs to make ends meet.

“It’s not on me to tell other businesses what’s good for them,” Draper said. “Where I get frustrated is when you have large corporations that essentially exploit the low minimum wage and then use my tax money through federal subsidies to make up the cost of living adjustment that employees need.”

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