MO minimum wage to increase in 2013

The Missouri Department of Labor announced last week an increased minimum wage will go into effect starting Jan. 1.

At the beginning of 2013, the state's minimum wage is slated to increase 10 cents to $7.35 per hour, according to the department's website.

Missouri's minimum wage has held at $7.25 per hour since July 2009. The minimum wage increased to $7.05 per hour in January 2009 after steadily increasing from $5.15 per hour in 2006, according to Department of Labor data.

State law dictates the minimum wage must be set following a September cost of living analysis, based on data from the U.S. Bureau of Labor Statistics in the Consumer Price Index.

Missouri Chamber of Commerce and Industry President and CEO Daniel Mehan, who last year praised the announcement that the minimum wage would stay flat, said the 10-cent increase in 2013 would place the state at a competitive disadvantage.

“It is concerning news that labor costs will increase and Missouri businesses will become less competitive compared to other surrounding states,” Mehan said in a news release. “This announcement underlines the need to break Missouri’s minimum wage away from the automatic escalator to which it is currently tied.  

"It causes uncertainty and positions Missouri to eventually raise its minimum wage to uncompetitive levels.”

The 2013 increase would push Missouri's minimum wage rate higher than the federal rate of $7.25 per hour. According to the chamber, Illinois would be the only contiguous state with a higher minimum wage than Missouri. The current minimum wage in Illinois is $8.25 per hour, according to the U.S. Department of Labor.