On Nov. 06, 2018, Missouri voters passed Proposition B, a five-year phased increase of the state’s minimum wage, but Missouri business owners are struggling with the impacts, reports the Herald-Whig.
The passed law requires the minimum wage to increase by 85 cents each year over the course of five years, reaching $9.45 in 2020, $10.30 in 2021, $11.15 in 2022 and $12 in 2023.
With the first phase taking effect Jan. 01, Missouri’s minimum wage was raised by 75 cents per hour to $8.60—the previous minimum wage was $7.85.
According to the Herald-Whig, the new law will likely have a big impact on small businesses and many entry-level and seasonal employees, with many business owners facing the possibility of increasing prices or lower their hiring efforts.
“Long-term we’re just going to have to make smart business decisions to accommodate for higher wages,” said Eric Abts, Executive Director of the YMCA of Hannibal, Missouri. “We promise that we will continue to provide excellent service and great facilities and programs, but we’re just going to have to be as smart as we can on every penny that we spend.”