Missouri proposed minimum wage initiative faces lawsuit

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November 18, 2011

By Bailey Ludlam

Missouri

JEFFERSON CITY, Missouri: Two versions of a proposed minimum wage initiative for the 2012 ballot] were cleared for petition circulation on November 8th but just one week later the proposal is now facing a legal challenge.

Kansas City restaurant owner Victor Allred filed a lawsuit in Cole County Circuit Court. The lawsuit argues that the cost estimates for the proposed initiatives are insufficient and unfair. According to reports, the Missouri Restaurant Association endorsed Allred's challenge.[1]

The petition and cost estimate state:[2]

Shall Missouri law be amended to:
  • increase the state minimum wage to $8.25 per hour, or to the federal minimum wage if that is higher, and adjust the state wage annually based on changes in the Consumer Price Index;
  • increase the minimum wage for employees who receive tips to 60% of the state minimum wage; and
  • modify certain other provisions of the minimum wage law including the retail or service businesses exemption and penalties for paying employees less than the minimum wage?


Increased state and local government wage and benefit costs resulting from this proposal will exceed $1 million annually. State government income and sales tax revenue could increase by an estimated $14.4 million annually; however, business employment decisions will impact any potential change in revenue. Local government revenue will change by an unknown amount.

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