Small businesses praise new minimum wage law, skeptics predict fallout

11 months 1 week 1 day 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
JEFFERSON CITY - One person was transported to the hospital in relation to a weapons offense Sunday morning, according to... More >>
1 day ago Sunday, October 20 2019 Oct 20, 2019 Sunday, October 20, 2019 11:27:00 AM CDT October 20, 2019 in News
ST. LOUIS (AP) — Children in St. Louis have been the victim of homicides at 10 times the national rate... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 9:34:54 PM CDT October 19, 2019 in News
WASHINGTON (AP) — President Donald Trump says he is reversing his plan to hold the next Group of Seven world... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 9:19:49 PM CDT October 19, 2019 in News
COLUMBIA - Police were seen searching the area near the scene of a crash Saturday afternoon. Police responded to... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 8:31:00 PM CDT October 19, 2019 in News
COLUMBIA - Community members came together Saturday for a Walk and Roll-A-Thon in recognition of Disability Employment Awareness Month. ... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 5:11:00 PM CDT October 19, 2019 in News
COLUMBIA - Demonstrators rallied at Speakers Circle on Saturday for the first ever National Period Day. Organizers said they... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 3:47:00 PM CDT October 19, 2019 in News
COLUMBIA - Community members got the chance to challenge Columbia police officers in their favorite video games during the department's... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 3:41:00 PM CDT October 19, 2019 in News
ST. LOUIS (AP) — Grassroots organizations are working across Missouri to persuade gun-related business owners to join efforts to limit... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 3:37:00 PM CDT October 19, 2019 in News
SALINE COUNTY — Three Saline County children abducted in 2017 were found in Arlington, Texas on Thursday, according to the... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 2:15:00 PM CDT October 19, 2019 in News
JEFFERSON CITY - One Lincoln man is dead following a crash between a motorcycle and a tractor-trailer Friday night on... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 1:19:00 PM CDT October 19, 2019 in News
COLUMBIA - The Columbia Water and Light department said it believes all power has been restored in Columbia. About... More >>
2 days ago Saturday, October 19 2019 Oct 19, 2019 Saturday, October 19, 2019 10:05:00 AM CDT October 19, 2019 in News
MARSHALL - The suspect in a pair of shootings in early October has been caught out of state, police announced... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 9:10:00 PM CDT October 18, 2019 in News
CALIFORNIA - A man heard his sentence on Friday after killing a 20-year-old three years ago for drunk driving. ... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 6:31:00 PM CDT October 18, 2019 in News
COLUMBIA - Below are scores from football games around mid-Missouri. Final scores are in bold. ... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 6:06:00 PM CDT October 18, 2019 in Friday Night Fever
COLUMBIA —The University of Missouri issued a statement Friday that the MU Department of Theatre was "in error" when it... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 5:52:00 PM CDT October 18, 2019 in News
COLUMBIA - Friday Night Fever’s Week 8 Game of the Week features a dominant Helias (6-1) visited by a surging... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 5:44:00 PM CDT October 18, 2019 in Friday Night Fever
COLUMBIA — The True False Film Festival and Ragtag Cinema are dissolving their relationship with Columbia church The Crossing. Cinema... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 5:33:00 PM CDT October 18, 2019 in News
COLUMBIA - Springfield Mayor Ken McClure hosted a group for a strategy session that included Governor Mike Parson in October.... More >>
3 days ago Friday, October 18 2019 Oct 18, 2019 Friday, October 18, 2019 4:18:00 PM CDT October 18, 2019 in News
Columbia, MO
Broken Clouds 44°
9am 47°
10am 49°
11am 51°
12pm 54°