Importance of a consistent minimum wage policy

Dan Hegeman

Among the most discussed bills that the Missouri General Assembly overrode during its veto session was House Bill 722, which prohibits cities and counties from adopting a minimum wage that exceeds the state standard.

This bill recognizes that throughout Missouri’s history, the adoption and establishment of the minimum wage has been a statewide policy and changes to that policy should be determined at a statewide level.

Missouri voters approved the current minimum wage law by ballot initiative in November 2006. That law includes a cost of living adjustment, which has resulted in several rate increases over the years.

The most recent increase came just earlier this year, on Jan. 1, raising the minimum wage from $7.50 to $7.65 — 40 cents higher than the federal rate. However, there has been a recent push from Missouri’s urban areas to take the unprecedented step to establish local minimum wages.

When it comes to the minimum wage, geographic consistency throughout the state is crucial.

The minimum wage is not an isolated component of our economy. Rather, it affects the whole of Missouri’s financial and economic well-being.

Allowing individual municipalities to establish minimum wage policy to whatever level they desire would only serve to create greater barriers to the growth of Missouri businesses, possibly leading them to question whether doing business in the Show-Me State, or even expanding an existing business into another Missouri market, is worth it.

Additionally, a mandatory increase in labor costs in one localized area would result in a reduction in available jobs as businesses reduce labor hours to meet increased costs and drive consumer spending outside our state.

Critics of HB 722 have said the law is nothing more than an attempt to strip local officials of power.

I see it very differently.

As lawmakers, we have a responsibility to the people of Missouri to act prudently when making any decision — most especially when that decision impacts the economic health of our entire state and the jobs and livelihoods of our citizens.

This is why any discussion to significantly raise the minimum wage needs to be conducted in a careful and thorough manner as a matter of statewide policy.