COLUMBIA — Missouri’s minimum wage will increase to $15 starting Thursday, and business owners and leaders have mixed opinions as to whether the change will be positive.
Some Columbia business owners said that the minimum wage increase will help their business and the economy, while other business leaders say it will hurt small businesses.
Starting Jan. 1, the minimum wage will change from $13.75 to $15, as set forth in Proposition A, which voters approved in the November 2024 general election. Proposition A passed by 57.6%.
Business For a Fair Minimum Wage issued a news release on Tuesday that said the increased minimum wage will reduce costly employee turnover, boost productivity and improve customer service.
But Missouri Restaurant Association CEO Buddy Lahl said the increase will increase prices for everyone across the state if employers raise prices to offset the increase in expenses for paying wages.
Michelle La Fata, the owner of Pasta La Fata, issued a statement to Business for a Fair Minimum Wage that said she viewed fair wages as an investment in her team and considered it a priority.
“While small businesses face economic headwinds,” La Fata said in the statement, “I believe paying people well is both the right thing to do and good for long-term business sustainability.”
According to Lahl, server wages will go up to $7.50.
Lahl also said he thinks there should be a tiered system, where at 18 you “kick into” minimum wage, and before that there should be a training wage.
“To take a 25-year-old that’s been in the industry or been in the workforce and then to bring them in at a $15 wage,” Lahl said, “and then bring a 16-year-old at the same wage just doesn’t quite seem right.”
Lahl said that on the surface, Proposition A sounded great, but that it could hurt business owners — and especially small-business owners.
“We already have so many regulations,” Lahl said. “I don’t think anybody understood without reading all the pages in Proposition A, how harmful this would be to businesses.”
The Missouri Supreme Court upheld Proposition A in April, but in July, Gov. Mike Kehoe signed a bill repealing the paid sick leave requirement originally in Proposition A.
