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New year marks minimum wage raise in Missouri

Missouri minimum wage employees received a pay increase this past Friday, the state’s minimum wage climbing to $10.30 per hour. An effect of Proposition B passed in 2018, the hike is part of a five-year plan to raise the minimum wage to $12 per hour by 2023.

Beginning New Year’s Day, Missouri’s minimum wage increased to $10.30 per hour, a rise of 85 cents.

According to the Missouri Department of Labor, the 85 cent raise only applies to employees working for a private business and there’s an additional caveat, those working in the retail or service industry won’t receive that added wage if their business makes less than $500,000 annually. 

The increase is a part of a five year plan.

Back in 2018, Missouri voters approved Proposition B- increasing the minimum wage 85 cents every year until it hits $12 per hour in 2023. 

Employees who do receive the pay raise January 1st, it will offer some economic relief to the challenges COVID-19 threw this past year. For small business owners already struggling to get by, having to pay their employees more could just be another financial burden. 

For employees who receive tips as part of their job, their employer is required to pay them at least 50% of the minimum wage which is now $5.15. Plus, the employer must match any amount necessary to bring the worker to a minimum of $10.30 per hour. 

According to the Missouri Department of Labor, the state’s minimum wage law doesn’t apply to public employers and the minimum wage rate cannot be lower than the federal minimum wage rate.