Missouri minimum wage to increase in new year

The state minimum wage is set to increase to $7.50 an hour at the start of the new year.

Effective Jan. 1, businesses - excluding retail and service businesses with annual gross sales below $500,000 - will be required to pay the new minimum in accordance with Missouri law. Also, employers will be required to pay tipped employees at least 50 percent of minimum wage, or the necessary amount to bring their workers' compensation to a minimum of $7.50 per hour, according to a news release.

The current rate is $7.35 per hour, according to the Missouri Department of Labor. Missouri law requires the state minimum wage to be at or above the federal minimum, which is currently $7.25 per hour.

Missouri law requires the minimum wage to be calculated yearly and increased or decreased based on the cost of living measured by the previous year's consumer price index, the release said.

The Missouri Chamber of Commerce and Industry said the minimum wage hike underscores the need for reform of the state's automatic escalator.

“As the minimum wage increases, the ability of employers to continue to employ workers is damaged – hitting entry level jobs especially hard,” Missouri chamber President Dan Mehan said in a news release. “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.”