Missouri’s Minimum Wage to Increase to $12.30 in 2024
From wire and staff reports
Many of Missouri’s lowest-paid workers can expect a raise next year. The state’s minimum wage will climb to $12.30 per hour on Jan. 1, a result of Proposition B, which was passed by voters in 2018.
This increase is part of a series of raises mandated by Prop B, with the goal of gradually raising the state minimum wage. The current federal minimum wage rate is $7.25 an hour, which has been in place since 2009.
Before Prop B, Missouri’s minimum wage was tied to the inflation rate, with the minimum set at $7.85 in 2018. However, the increases mandated by Prop B have outpaced inflation, resulting in a significant wage increase for workers.
Starting on Jan. 1, 2024, the minimum wage may increase or decrease each year depending on cost-of-living changes reflected in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
At a minimum, all private businesses are required to pay the $12.30 hourly rate, except retail and service businesses with gross annual sales that are less than $500,000, according to the Missouri Department of Labor and Industrial Relations.
It’s worth noting that Missouri’s minimum wage law does not apply to public employers. Additionally, compensation for tipped employees must total at least $12.30 per hour, with employers required to pay at least 50% of the minimum wage, plus any amount necessary to bring the employee’s total compensation to a minimum of $12.30 per hour.
In neighboring Illinois, the state minimum wage will also increase to $14 on Jan. 1, 2024. According to the Economic Policy Institute, on Jan. 1, 22 states will increase their minimum wages, raising pay for an estimated 9.9 million workers and providing a total of $6.95 billion in additional wages from state minimum wage increases.
In historic context, the fight for fair wages has been ongoing for many years. The issue of low minimum wages has been a point of contention in the United States, with various advocacy groups and lawmakers pushing for higher minimum wages to provide workers with a livable income.
This increase in Missouri’s minimum wage is a step towards providing better pay and improved living standards for many workers across the state. It also demonstrates the ongoing shift in labor policies to support the well-being of workers.
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