Minimum Wage
Issue Overview: Since Missouri passed Proposition B in 2006, the federal government has raised the minimum wage. By the end of 2009, the federal minimum wage will move to $7.25 and, because of Prop B, Missouri employers will be required to pay an additional amount based on the consumer price index. Within five years, Missouri will have a higher minimum wage than any of our neighboring states. From an economic development standpoint, our higher minimum wage will do nothing to attract small business start-ups to the state.
Also, Prop B allows employers to pay tipped employees half of the Missouri minimum wage if the employees' total compensation, including tips, equals the Missouri minimum wage. This provision means that restaurant owners and other employers with workers who receive tips must increase the base pay for those employees.
NFIB Position: NFIB will vigorously support the repeal of the indexing provisions found in Prop B and changes in the law that would limit base-pay increases for tipped employees.
Issue Status: SB 1007, introduced by Sen. Loudon, has passed the Senate Small Business Committee and will go to the Senate floor for debate.
What to Do: Every member should contact their senator and encourage them to support this bill.
