OpinionDecember 17, 2024

Missouri's Proposition A raises the minimum wage to $15 by 2026 but faces legal challenges. Critics argue it burdens businesses and violates constitutional requirements. Will it withstand scrutiny?

Chris Dinkins
Chris Dinkins

Do you wonder ... what happened to the $1 Menu and why is fast food no longer a cheap meal? Why are groceries so high? Why have businesses shortened their operating hours? Why are there so many self-checkouts and few that are staffed? There is more than one reason we are facing these things but this week I am going to talk to you about the newest issue.

On November 5, Missouri voters passed Proposition A, amending state law to raise the minimum wage. Once the election results are certified, the state’s minimum wage will increase to $13.75 per hour on January 1, 2025, and to $15.00 per hour on January 1, 2026. Currently, Missouri’s minimum wage is $12.30 per hour, up from $7.65 in 2015. There are 114 counties in the state of Missouri. Only 28 counties (25%) supported the minimum wage increase, while 86 (75%) opposed this increase.

Proposition A was placed on the ballot through the initiative petition process, which means it was not vetted as legislation is. The full text of Prop A can be found on the Secretary of States webpage and is 9 pages long. However, the ballot language, which the majority of the voters read instead, was only a short paragraph. Most voters did not know everything included in this proposition. The law exempts governmental entities, political subdivisions, school districts and education institutions from the minimum wage increase. Proposition A requires all employers to provide one hour of paid sick leave for every 30 hours worked. For businesses with more than 15 employees, employees may use up to 56 hours of paid sick leave per year. For businesses with less than 15 employees, employees may use up to 40 hours per year. Employees will start accruing paid sick time on May 1, 2025.

Missouri ranks well above the federal minimum wage of $7.25. Beginning in January Missouri will be $6.50 higher than the federal. As a matter of fact, only 13 states will have a higher minimum wage than us, yet we are one of the cheapest states to live in. Missouri ranks 6th; only 5 other states are cheaper to live in. The cost of living in Missouri is lower than the national average for a number of reasons.

Now some of you may argue, but I can’t support a family on minimum wage. Minimum wage is not meant to support a family — it is meant to be entry level positions. A place to begin, such as high school students, first time employees or part time workers. The minimum wage is not designed to be a living wage, meaning it is not intended to provide enough income for a person to cover basic necessities like food, housing and healthcare in most areas, and is considered only a baseline for employment. Minimum wage jobs were never intended to be the career that people depend on to support a family. People that work minimum wage jobs and want to earn more should take it upon themselves to obtain skills, education, or strong work ethic that would afford them higher paying jobs.

When small businesses in rural areas like ours are forced to increase their payroll, they have to find ways to make up for this extra cost. Most are struggling to make ends meet already. This is where prices increase, slower business hours are eliminated, and machines begin to replace people because it is cheaper. This forced hike in the minimum wage also cause compression with tenured employees who have already worked their way up the pay scale. Employers just cannot afford to give them the same jump in pay. Proposition A is bad policy and will have extreme and detrimental effects on Missouri’s businesses.

Missouri’s business community filed a petition with the Missouri Supreme Court on Friday, Dec. 6, 2024, in an effort to overturn Proposition A — a measure that will increase prices for consumers and impose significant financial burdens on businesses of all types and sizes, including Missouri’s restaurants, grocery stores and small businesses. The basis of this action is the election irregularities and the constitutional violations are so significant that the election results must be overturned and Proposition A declared invalid.

The Missouri Constitution requires ballot initiatives to contain a single subject, expressed clearly in the title of the ballot measure. Proposition A contains at least two clear subjects – minimum wage increase and mandatory paid sick leave. Proposition A will impose multiple new and separate requirements on Missouri employers. All employers — including those currently offering paid leave — face new mandates regarding employees’ use of paid sick leave and the enforcement of leave policies.

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The business coalition is challenging Proposition A on several counts:

• The Missouri Constitution requires ballot initiatives to contain a single subject. Proposition A contains at least two clear, unrelated subjects — minimum wage and earned sick leave.

• The Missouri Constitution requires the title of the ballot measure to clearly express its single subject. Proposition A’s title is unclear and contains multiple subjects.

• The ballot measure’s summary statement and fiscal note summary — an estimate of the ballot measure’s financial impact on state and local governments — are misleading and insufficient.

• By exempting government entities and certain workers, Proposition A violates the Equal Protection Clause.

The Missouri General Assembly could overturn or modify Proposition A. Proposition A changed state law but not the state constitution, because of this, lawmakers could choose to overturn or change portions of it without voter approval.

As always, please do not hesitate to reach out with any questions, concerns, or suggestions you might have. As your Representative, I am here to assist you however I can. I can be reached by email at Chris.Dinkins@house.mo.gov or by phone at (573) 751-2112. Please do not contact me via social media. These messages are easy to overlook and may not be responded to in a timely manner.

CHRIS DINKINS serves the 144th District of Missouri. She can be reached by email at Chris.Dinkins@house.mo.gov or by phone at (573) 751-2112.

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