As of Friday, May 5, St. Louis’ $10 minimum wage went into effect after a circuit court judge lifted the injunction that prevented the wage hike. In 2015, the city passed the minimum wage increase, but business groups—including NFIB/MO—sued on the grounds that state law prevents localities from passing a minimum wage rate higher than that of the state. However, at the end of February, the Missouri Supreme Court ruled that the city’s 2015 minimum wage ordinance could go into effect after all.
Though this rate of $10 per hour is significantly higher than the state rate of $7.70 per hour, as well as the $8.25 per hour rate in neighboring downstate Illinois, St. Louis’ minimum wage will rise again to $11 on Jan. 1, 2018. It will also continue to rise with inflation in 2019 and beyond.
Employers who don’t comply with the new minimum wage rate could lose their business license and occupancy permit as well as face criminal charges. Businesses that gross less than $500,000 per year or employ fewer than 15 workers will not be affected by the new rate, however, the St. Louis Post-Dispatch reported.
However, thanks to work of the General Assembly, HB 1193 & 1194 passed the legislature with a half hour left in the session. This bill clarifies and reiterates that municipalities can not have a minimum wage higher than that of the state or federal government. The passage of this bill will nullify the May 5 increase in St. Louis. Since this just passed on Friday evening, there could still be some legal fallout from the General Assemblies actions but we are not sure what those might be at this time.
