More than 100,000 workers in Missouri are expected to see a pay bump this week with the increase of the state’s minimum wage, according to a report from the Economic Policy Institute.
With the start of the new year, Missouri’s minimum wage increased to $8.60, up about 11 percent from $7.85.
That follows voters’ November approval of Proposition B, which called for a raise in the state’s minimum wage to $12 an hour by 2023. More than 60 percent of voters favored the increase.
The Economic Policy Institute, a liberal-leaning think tank, estimated that 107,000 Missouri workers, or about 4.1 percent of the state’s workforce, will be directly affected by the new law.
David Cooper, an analyst with the Economic Policy Institute, said the five-year approach to phasing in the $12 minimum wage will allow business owners time to adjust staffing, schedules, processes and prices to compensate for the higher wage.
A coalition of small businesses backed the plan for an increased wage floor in the run-up to November’s election.
However, Ray McCarty, president and CEO of Associated Industries of Missouri, has opposed the wage increase and said it will be passed through to consumers in the form of higher prices or felt by workers in the reduction of hours.