Missouri Restaurant Association weighs legal challenge to minimum wage increase
Nov 06, 2024
KANSAS CITY, Mo. -- Missouri voted to pass Proposition A Tuesday, an initiative that will increase the minimum wage to $15 and require many businesses to provide their employees with paid sick days.
The measure passed by a fairly wide margin with 58% of voters approving. But now one opposition group says its exploring a legal challenge that it should never have been a single ballot item. Barring any sort of injunction, the first part of go into effect in less than two months.
For about a decade "Fight for 15" rallies have taken place around Kansas City calling for a $15 minimum wage.
Election Day voters approved an increase from the current $12.30 up to $15 by 2026 with annual adjustments for inflation after that. It will be $13.75 starting this January 1.
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Missourians for Healthy Families and Fair Wages says it will put an extra $600 million a year in the pockets of 500,000 impacted workers.
"Wages that families can turn around and spend in our local economy which really fuels economic growth," campaign manager Richard von Glahn said.
Missouri's Restaurant Association is worried not just by the higher minimum wage, but another part of the ballot measure that mandates paid sick time.
"I'm certain there will be price increases. You can't add a 11% payroll plus sick pay on top of the operator's expenses and not pass that on to consumer," Buddy Lahl Missouri Restaurant Association CEO said.
Starting May 1, workers will earn one hour of sick pay for every 30 hours they work, with small businesses required to pay a minimum of five days of sick time a year, and businesses with 15 employees or more at least seven days.
"We know that everyone gets sick, everyone has a loved one that gets sick through no fault of their own. It's important that frontline workers get the same benefits that executives and white collar workers get," von Glahn said.
Lahl says the proposition doesn't mesh with how things have traditionally worked in the restaurant businesses.
"If your kid gets sick at school and you have to go ok I get it. But then you pick up a shift on Wednesday or Saturday. This doesn't allow for any of that, this just says we are going to pay you sick pay," he said.
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He says he's worried about the extra burden on businesses without human resources departments and their bottom line.
No challenges have been filed as of yet. But the Missouri Restaurant Association believes Missourians should have had the ability to vote on the minimum wage increases and sick pay requirements separately under rules outlined in Article 3, Section 23 of the Missouri Constitution.