Small businesses praise new minimum wage law, skeptics predict fallout

6 months 1 week 3 days 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 - According to the Callaway County Sheriff's Office, water was over the runways at Jefferson City Airport in Callaway... More >>
2 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 8:09:00 PM CDT May 24, 2019 in Coverage From Callaway
COLUMBIA - A man involved in a car crash on I-70 May 16 has died from his injuries. William... More >>
4 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 6:31:00 PM CDT May 24, 2019 in News
BOONE COUNTY - The Missouri River has completely overflowed its banks near the end of South Route N. near Ashland.... More >>
4 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 6:16:00 PM CDT May 24, 2019 in News
JEFFERSON CITY - Jefferson City is offering instructions on how to get rid of the debris created by Wednesday's tornado.... More >>
5 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 5:08:00 PM CDT May 24, 2019 in News
JEFFERSON CITY - Insurance agents are warning people hit by Wednesday's tornado to be careful about signing repair contracts. ... More >>
7 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 3:26:00 PM CDT May 24, 2019 in News
JEFFERSON CITY – Volunteers from all over Jefferson City are working to help those affected by the tornado. The... More >>
7 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 2:37:00 PM CDT May 24, 2019 in Top Stories
JEFFERSON CITY - Members from House of Refuge are keeping their faith after Wednesday's tornado completely destroyed their church. ... More >>
8 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 1:37:00 PM CDT May 24, 2019 in Top Stories
ROCHEPORT - The 11th annual Pedaler's Jamboree bike ride got a good start Friday, and Missouri River levels are falling.... More >>
11 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 10:47:00 AM CDT May 24, 2019 in News
JEFFERSON CITY (AP) — Missouri Gov. Mike Parson on Friday signed a bill that bans abortions on or beyond the... More >>
12 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 10:32:00 AM CDT May 24, 2019 in News
JEFFERSON CITY - Missouri Task Force 1 has deactivated from Jefferson City after an EF-3 tornado swept through the area... More >>
13 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 9:11:00 AM CDT May 24, 2019 in News
JEFFERSON CITY - As Jefferson City continues to clean up from the tornado on Wednesday night, it still has to... More >>
21 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 12:51:00 AM CDT May 24, 2019 in News
JEFFERSON CITY- During the chaos of the tornado in Jefferson City, one cheerleading and "American Ninja Warrior" gym got torn... More >>
22 hours ago Friday, May 24 2019 May 24, 2019 Friday, May 24, 2019 12:15:00 AM CDT May 24, 2019 in News
JEFFERSON CITY - Volunteers from around Missouri came out to help with the disaster that Wednesday night's EF-3 tornado brought... More >>
22 hours ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 11:52:00 PM CDT May 23, 2019 in News
JEFFERSON CITY - The Missouri Office of Administration said Wednesday's tornado "caused significant roof damage" to two buildings at the... More >>
23 hours ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 10:54:00 PM CDT May 23, 2019 in News
JEFFERSON CITY - Students who visited the Simonsen Ninth Grade Center in Jefferson City Thursday said it is heartbreaking to... More >>
1 day ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 9:17:00 PM CDT May 23, 2019 in News
COLUMBIA - Missouri's U.S. Senators both voted yes Thursday on a disaster aid bill that includes fresh resources for farms... More >>
1 day ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 5:38:00 PM CDT May 23, 2019 in News
JEFFERSON CITY - Resources are available across the area for those affected by tornadoes in Jefferson City and Eldon Wednesday... More >>
1 day ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 5:02:00 PM CDT May 23, 2019 in News
JEFFERSON CITY - Residents of the eastern part of Jefferson City spent much of Thursday cleaning debris. Andrew Buchanan,... More >>
1 day ago Thursday, May 23 2019 May 23, 2019 Thursday, May 23, 2019 2:40:00 PM CDT May 23, 2019 in News
Columbia, MO
Broken Clouds 76°
11pm 73°
12am 73°
1am 74°
2am 73°