Missouri Minimum Wage Reaches $15.00 by 2026

Missouri's minimum wage is set for a significant climb, reaching $15.00 per hour by January 1, 2026. This trajectory marks a substantial increase from its $7.65 per hour rate in 2015, largely propelled by voter-approved initiatives and subsequent legislative adjustments. What does this mean for workers and businesses across the state?

How Did Missouri's Minimum Wage Evolve?

The journey to $15.00 began with steady annual increases since 2015, often tied to the Consumer Price Index. A pivotal moment arrived with Proposition A in 2024, which outlined a phased increase, targeting $13.75 per hour in 2025 and the final $15.00 per hour in 2026. However, legislative action in July 2025 through House Bill 567 brought changes. While the $15.00 rate for 2026 remains, this bill repealed the automatic annual adjustments based on the cost of living and removed the paid sick leave mandates that were part of Proposition A.

Who Is Covered by the New Wage Laws?

Initially, Proposition A had certain exemptions, but House Bill 567 expanded coverage to include both private and public employers. However, some specific exemptions persist. For example, retail or service businesses with an annual gross income below $500,000 are exempt from the state minimum wage law and can pay a lower wage. What about tipped employees? They have a special provision: employers must pay them at least half of the minimum wage. For 2026, this means a minimum of $7.50 per hour, with employers obligated to make up any difference to ensure total compensation (including tips) meets the full $15.00 per hour.

What Economic Impact Can We Expect?

Historically, minimum wage increases in Missouri have shown positive economic effects. During previous phase-ins, the state's unemployment rate decreased faster than the national average and neighboring states without similar increases. This suggests that higher wages can reduce employee turnover and potentially boost employment. A projected $15 per hour minimum wage is anticipated to impact over 562,000 Missouri workers, injecting more than $609 million into the state's economy annually. Why? Low-wage workers are likely to spend their earnings locally. It's a common misconception that only teenagers benefit from these increases; data indicates the majority of impacted workers are adults over 20, many of whom are older workers supporting families.