House committee hears debate on state minimum wage

JEFFERSON CITY — Voters approved raising Missouri’s minimum wage to $15 an hour last November. On Wednesday, the House Commerce Committee held a public hearing about two bills that would grant businesses some leeway.
House Bill 758 has four major components, said bill sponsor Rep. Carolyn Caton, R-Blue Springs. One component removes future changes to the minimum wage that occur in correlation with inflation.
“Higher wages are a key component to higher inflation,” Caton said during the hearing. “Having any tax, fee or cost, such as wages, tied to inflation is bad public policy.”
This bill also allows workers under 20 to be paid below the state’s minimum wage, applies minimum wage law to government jobs and changes which businesses are allowed to give paid sick time to employees.
HB 958 was presented with HB 758 at the hearing and has similar exceptions to the minimum wage. Under this bill, workers that are under 21, are employed by a company with 49 or fewer employees, quit without notice or violate company policy could all be paid below the state’s minimum wage.

Rep. Scott Miller, R-St. Charles, said the bill is about making sure that a minimum wage is earned.
“Businesses incur expenses and risk associated with employing people that employees themselves don’t incur, and what it really tries to do is balance that relationship,” Miller said about his bill.
The businesses that would be most affected by changes to the Missouri’s minimum wage seem to be small businesses. According to witness testimony from Missouri Jobs with Justice, firms employing one to 49 workers made up 96.4% of all businesses in the state.
Higher wages mean paying employees more, which can challenge some small businesses.

Buddy Lahl, CEO of the Missouri Restaurant Association, spoke in favor of the bill at the hearing. He said that wages are just a cost of doing business.
“Obviously you want the best worker for the best wage to get the most productivity,” Lahl said. “Labor and wages are a concern, but we believe in paying people what they’re worth.”
For Miller, his bill is a step in guaranteeing minimum performance for minimum wage, which he said would protect small businesses.
“We just need something that brings back into balance the relationship between businesses and employees with regards to what they’re paid,” Miller said.
Wednesday’s hearing was just one part of a wide debate about wages in Missouri. A lawsuit filed on behalf of Missouri businesses is set for next month, and it seeks to overturn the recent minimum wage increase.
Both wage bills are still being considered by the House Commerce Committee. Members say they expect to produce a committee substitute bill that combines pieces of each bill into one.