Missouri businesses say new minimum wage could raise prices | Mid-Missouri News

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COLUMBIA – Missouri’s minimum wage will increase by more than a dollar Wednesday after voters passed Proposition A by a significant margin in November.

The minimum wage will rise to $13.75 from $12.30, and some employers will also be required to give their employees one hour of paid sick leave for every 30 hours worked.

Proposition A would increase the minimum wage to $15 an hour by 2026.

Some businesses in Columbia say this increase will have an impact on both employees and business owners.

People in favor of the proposal believe it is a step in the right direction toward giving minimum wage workers a more livable income. But opponents say it will cause another rise in prices.

“Food inflation is through the roof – we’re still at 10-12% price increases,” said Buddy Lahl, executive director of the Missouri Restaurant Association. “Adding additional regulations will, in turn, continue to add increased prices to consumers.”

Lahl also believes that the mandated paid sick leave can deprive workers of other benefits. “Typically, employers provide vacation days and health insurance, and then you would get sick pay. This is mandating sick pay before health insurance, and I’m not so sure that’s the right thing to do.”

The Missouri Chamber of Commerce argues that Proposition A violates the requirement that ballot measures address only one issue.

An executive at Hitt Mini Mart said business owners can prepare for the wage increase to help keep costs down.

“The best most companies can do is try to offer as much as possible,” Patel said. “Yes, I know prices will go up and it will be difficult for some people to adjust to the new prices, so the best I can do is try to get a deal for them.”

As basic necessities become more expensive, experts say higher wages for Columbia residents will go a long way toward keeping pantries full.

“Currently in 2024, a full-time minimum wage worker was making less than $500 a week,” said Richard Von Glahn, the policy director at Missouri Jobs with Justice. “That’s not enough to survive in any county in this state. The rising prices are actually why raising the minimum wage is so important to begin with.”