A Look at Missouri's Proposition B: Increased Minimum Wage Ahead
With the election over and done, it's time to take a look at one of the state-wide propositions that passed in Missouri. Proposition B was written to create a framework to increase the minimum wage in Missouri from the current federal level of $7.85 to $12.00 per hour over the next five years. Here's a look at the time frame and how it may impact your Missouri-based business.
Proposition B will increase the state-level minimum wage in Missouri over five years, increasing to $8.60 in 2019, $9.45 in 2020, $10.30 in 2021, $11.15 in 2022 and $12.00 in 2023. That's over 50% across five years, which is a serious issue for many businesses. It should be noted that the language of the proposition does not exclude food service workers, who are expected to make up some portion of their wages in tips, from this minimum, though how that will play out will need to be determined in court. But it will impact much more than just what you pay your employees. It will have an impact on several other areas of your business finance that you will need to take into account as well.
Government employees are specifically excluded from this proposition, but that's about the extent of the exclusions. That means when you purchase supplies for your company, whether for production or for other company use, you can expect to see a significant price increase. Your rent may increase, as the cost of maintenance workers will increase. Any construction or maintenance companies you have in to work on your facilities will go up because of the increased cost of labor. Across the board, anything you purchase from a company based in Missouri may have increased costs if the company has employees paid below the increased minimum wage.
This planned minimum wage increase will have far-reaching effects on Missouri businesses and the state's economy, but how it will impact your company remains to be seen. If you need help developing a strategy to incorporate the increased minimum wage into your Missouri business plan, AccountRely can help. Please feel free to contact us today to be connected with one of our experienced business professionals to get started on a plan of action.