Legislature sets Missouri minimum wage increase to $12 by January 2023

The Missouri State Legislature has introduced House Bill 1577, aimed at revising the state's minimum wage and paid sick leave policies. The bill, presented on February 28, 2025, seeks to establish a more structured approach to wage increases and enhance employee benefits.

The primary focus of House Bill 1577 is to adjust the minimum wage incrementally. Under the proposed legislation, the minimum wage would start at $8.60 per hour, with annual increases of $0.85 until it reaches $12.00 per hour by January 1, 2023. This approach contrasts with previous proposals that aimed for a higher minimum wage of $15.00 per hour. The bill also stipulates that if the federal minimum wage surpasses the state rate, the higher federal wage would automatically apply.

In addition to wage adjustments, the bill addresses earned paid sick time, defining it as compensated time off for employees, ensuring they receive the same hourly rate and benefits during this period. However, the bill specifies that public employers, such as state agencies and local governments, are exempt from the minimum wage provisions outlined in the bill.

Debate surrounding House Bill 1577 has been notable, with proponents arguing that the gradual increase in minimum wage will help workers without placing undue financial strain on businesses. Critics, however, express concern that the proposed wage increases may not be sufficient to meet the rising cost of living and could leave many workers struggling to make ends meet.

The implications of House Bill 1577 are significant, as it reflects ongoing discussions about wage equity and workers' rights in Missouri. Economic experts suggest that while the bill may provide some relief to low-wage workers, it may not fully address the broader issues of income inequality and job security.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders from various sectors will be closely monitoring developments, as the outcome could set a precedent for labor policies in Missouri and potentially influence similar legislative efforts in other states.