St. Louis Minimum Wage Out, Statewide Preemption In (Eff. 8/28/17)

08.15.2017

BY: KATHERINE E. WHITNEY 

Local minimum wage ordinances in Missouri will become invalid on August 28, 2017, when House Bill 1194, which bans local minimum wage ordinances, becomes law.

Importantly, this change in law affects both the St. Louis ordinance which took effect earlier this year, as well as a minimum wage ordinance scheduled to take effect in Kansas City later this year.

The law, previously known as House Bill 1194, prohibits cities in Missouri from establishing minimum wage rates higher than the state’s minimum wage. The new law also “preempts and nullifies” local laws starting on August 28, 2017.

To summarize: Employers in St. Louis who are subject to the City’s minimum wage ordinance must continue to pay a minimum wage of at least $10.00/hour until August 28, 2017, then they can reduce the hourly minimum wage to $7.70/hour.

As a reminder, some St. Louis employers are exempt from this ordinance (including most governmental entities, sheltered workshops, businesses with an annual gross revenue of less than $500,000, businesses that have been in operation for less than a year and also have a reasonably projected annual gross revenue of less than $500,000, and any employer with 15 or fewer employees).

On Tuesday, August 8, 2017, Kansas City, Missouri, voters approved a city ballot initiative to gradually raise the city’s minimum wage to $15.00/hour over several years, with the first increase occurring on August 24, 2017, and increasing the minimum wage to $10.00/hour. It is important to note, however, that the citywide minimum wage ordinance will only be effective for a few days, as the statewide minimum wage preemption law takes effect on August 28, 2017. The City Attorney’s office has indicated it will recommend the City not enforce the minimum wage ordinance, given its maximum enforcement period of only four days.

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Related People: 
Katherine E. Whitney

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