Missouri Nullifies St. Louis and Kansas City Minimum Wage Ordinances

On August 28, 2017, Missouri House Bill (“HB”) 1194 will take effect and the (1) City of St. Louis’ minimum wage will decrease from $10.00 per hour to the state minimum wage of $7.70 per hour and (2) Kansas City’s minimum wage, which was previously scheduled to increase from $7.70 to $8.50 per hour on September 18, 2017, will remain unchanged.

On June 30, 2017, Missouri Governor Eric Greitens announced that he would neither sign nor veto HB 1194, which prohibits a political subdivision from requiring an employer to provide an employee a minimum or living wage or any employment benefit that exceeds that provided by state law. The bill also preempts and nullifies all similar political subdivision ordinances in effect or later enacted. The Governor’s failure to take action, in essence, guarantees HB 1194 will become law and take effect on August 28.

Special interest groups are expected to challenge the state’s ability to preempt minimum/living wage ordinances by municipalities. We will continue to monitor this matter and notify you of any further developments.

Coverage:  Employers with employees in either St. Louis or Kansas City, Missouri.

Effective:   August 28, 2017

Action Required:  No action is required by employers in Kansas City. Employers in St. Louis should continue complying with the St. Louis Minimum Wage Ordinance by complying with the prescribed notice requirements and paying employees a minimum wage of $10.00 per hour until August 28, 2017.