Small businesses praise new minimum wage law, skeptics predict fallout

1 year 3 months 2 weeks ago Monday, November 12 2018 Nov 12, 2018 Monday, November 12, 2018 5:30:00 PM CST November 12, 2018 in News
By: Travis Breese, KOMU 8 Reporter
loading

MID-MISSOURI - Some small businesses in Columbia are hailing the passage of a new law that will raise Missouri's minimum wage to $12 in 2023.

"It's time for everybody to be making a living wage," Katie Burton, who manages Valhalla's Gate Games in West Columbia, said.

Burton and her husband, Mark, have been running the game store for 18 years and she's happy voters finally upped Missouri's minimum wage of $7.85 an hour on November 6.

"Better paid employees are better workers," Burton said. Only two states with laws like this had minimum wages set below $7 in 2018, according to the National Conference of State Legislatures. 

Prop B, the name of the measure proposing to do this, passed by a wide margin. Sixty-two percent of voters voted to raise the minimum wage while only 37 percent voted 'no'.

Effective January 1, 2019, the statewide wage will be $8.60. It will then increase by $.85 every year until reaching $12 in 2023. 

Cities in Missouri have had to fight hard to get these laws approved in the past. St. Louis raised its minimum wage in 2015, but the governor and state legislature blocked it. 

A circuit judge lifted an injunction months later, though, allowing the city to raise its wage to $10. 

"The studies show that with people being paid better, everyone will do better," Burton said. 

But some associations representing larger businesses in Missouri see flaws in the new law. 

"Something has to happen for that business owner to afford the additional wages that they're paying," Ray McCarty, president of Associated Industries of Missouri, said.

McCarty's organization represents the interests of large employers in Missouri like Ameren Missouri and Anheuser-Busch, according to its website

"They'll have to either increase prices, if they're able to do so, or they'll have to cut the hours of minimum wage employees," McCarty said. "Or possibly cut positions."

McCarty also said voters may have forgotten some side effects of voting 'yes' on Prop B.

"Investing in automation, which we are starting to see more and more of in Jefferson City," McCarty said. "We're starting to see more kiosks and things that don't require human intervention."

Burton believes that anyone speaking against raising the minimum wage isn't considering the right people.

"Everybody's like, 'Oh, let the free market just pay people whatever it wants.' Well, they take it for corporate profits and they don't pay their people better," Burton said. 

She thinks the right course of action is to give this new law a shot.

"Let's just do it and let's see," Burton said. 

More News

Grid
List
COLUMBIA - Emergency responders have reported more than a dozen crashes or other traffic incidents related to slick roads Wednesday... More >>
21 minutes ago Wednesday, February 26 2020 Feb 26, 2020 Wednesday, February 26, 2020 7:50:06 AM CST February 26, 2020 in News
CHARLESTON, S.C. — Bernie Sanders faced a torrent of attacks Tuesday night during a raucous debate that tested the Democratic... More >>
11 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 8:20:00 PM CST February 25, 2020 in News
JEFFERSON CITY - One group of former service men and women is making a difference across the state providing help... More >>
12 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 8:10:00 PM CST February 25, 2020 in News
JEFFERSON CITY - New technology installed by Ameren could provide more responsive service if severe weather comes to Jefferson City.... More >>
13 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 6:45:00 PM CST February 25, 2020 in News
COLUMBIA - Columbia neighborhood watch is still relevant despite social media and sites like Nextdoor. Neighborhood watch programs encourage... More >>
14 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 5:51:00 PM CST February 25, 2020 in News
HOLTS SUMMIT - The American Cancer Society's annual "Stick a Fork in Cancer" campaign welcomes a new restaurant. BluTaco joins... More >>
14 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 5:34:00 PM CST February 25, 2020 in News
JEFFERSON CITY - Lieutenant Governor Mike Kehoe today filed to run for election in 2020. Kehoe has served as... More >>
14 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 5:12:00 PM CST February 25, 2020 in News
COLUMBIA - The city of Columbia Public Works plow crews are scheduled for 7 p.m. Tuesday, to prepare for possible... More >>
15 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 4:54:00 PM CST February 25, 2020 in News
JEFFERSON CITY— Tuesday at the Missouri State Capitol, representatives heard testimony from people in regards to a house bill that... More >>
16 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 3:25:00 PM CST February 25, 2020 in News
JEFFERSON CITY - Governor Mike Parson and Auditor Nicole Galloway filed to run for governor on Tuesday. It was... More >>
17 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 2:26:00 PM CST February 25, 2020 in News
COLUMBIA -- The Civil Rights Movement was a time of racially charged protests and marches. Some activists took to the... More >>
18 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 2:10:00 PM CST February 25, 2020 in News
COLUMBIA - Missouri joined 38 other states in an investigation into Juul Labs on Tuesday. Those states are looking into... More >>
18 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 1:59:00 PM CST February 25, 2020 in News
COLUMBIA - Columbia College announced Tuesday it is laying off 49 employees across the nation, including 25 at its Columbia... More >>
19 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 12:59:00 PM CST February 25, 2020 in News
COLUMBIA- An announcement from Bishop Shawn McKnight at Father Tolton today revealed the school's $6.2 million-dollar debt will be completely... More >>
20 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 11:46:00 AM CST February 25, 2020 in News
JEFFERSON CITY - Missouri joined a bipartisan, multistate investigation of JUUL Labs on Tuesday, according to Missouri Attorney General Eric... More >>
20 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 11:33:00 AM CST February 25, 2020 in News
(CNN) -- Snuggling next to my kitties while their furry chests softly rumble is a proven antidote to the day's... More >>
22 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 9:16:39 AM CST February 25, 2020 in A Brighter Tomorrow
COLUMBIA - Police arrested a man connected to a deadly shooting during a home invasion in Columbia in early February.... More >>
23 hours ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 8:17:28 AM CST February 25, 2020 in News
FULTON - Three people were arrested in Fulton Tuesday morning after one person fled from a traffic stop. A... More >>
1 day ago Tuesday, February 25 2020 Feb 25, 2020 Tuesday, February 25, 2020 8:03:00 AM CST February 25, 2020 in News
Columbia, MO
Broken Clouds 30°
9am 31°
10am 32°
11am 34°
12pm 36°