Missouri’s minimum wage was raised to $12.30 per hour on January 1, a direct outcome of Proposition B, which gained voter approval in 2018. Prop B initiated an annual increase of 85 cents in the state minimum wage, a trend that continued until 2023.
Before Prop B, Missouri’s minimum wage was linked to the inflation rate, standing at $7.85 in 2018 when voters supported Prop B.
These increments mandated by Prop B have consistently surpassed inflation, ensuring that workers receive more in compensation. Starting January 1, 2024, the minimum wage may fluctuate annually based on changes in the cost of living, as reflected in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
All private businesses must pay the $12.30 hourly rate, with exceptions granted to retail and service businesses boasting gross annual sales below $500,000. Public employers are exempt from Missouri’s minimum wage law, and the state ensures its minimum wage rate never falls below the federal minimum wage rate, which has remained at $7.25 per hour since 2009.
Tipped employees must receive compensation totaling at least $12.30 per hour. Employers are mandated to pay tipped employees a minimum of 50% of the minimum wage, along with any additional amount necessary to reach a total compensation of $12.30 per hour.
According to the Economic Policy Institute, 22 states increased their minimum wages on January 1, benefiting an estimated 9.9 million workers and resulting in $6.95 billion in additional wages from state minimum wage hikes.
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