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St. Louis minimum wage increase effective May 5, 2017
By Lauren Harris on May 5, 2017 at 12:15 PM

Image of American ten dollar billSt. Louis city’s new minimum wage law increasing the minimum wage to $10 per hour takes effect May 5, 2017. This comes after a circuit court lifted its injunction that previously blocked the ordinance from taking effect.

Pursuant to the ordinance, the minimum wage will rise again on Jan. 1, 2018, to $11 per hour. The ordinance applies to any employee working a total of 20 hours or more within the city during the previous 12 months. The ordinance also requires that employers pay at least $5 per hour to tipped employees who earn more than $30 per month in tips.

The new minimum wage does not apply to:

  • governmental entities other than the city of St. Louis;
  • employers whose gross annual revenue was less than $500,000 in the previous calendar year;
  • employers in operation for less than a year whose gross annual revenue is projected to be less than $500,000 in its first 12 months of business; and
  • employers with 15 or fewer employees at all times in the current and previous calendar year, except franchises.

As we have noted in prior posts, the ordinance was passed in 2015 but was challenged in the courts. The Missouri Supreme Court upheld the ordinance on Feb. 28, 2017, finding that it was not preempted by Missouri’s state minimum wage law and that it “simply raise[s] that floor for local employees based on local conditions.” The current Missouri minimum wage is $7.70 per hour, and the federal minimum wage is $7.25.

Employers must post a new City of St. Louis Minimum Wage poster and payroll notice, found here. Employers must also provide the payroll notice with the first paycheck reflecting the increase.

Employers who fail to comply with the ordinance are subject to prosecution in municipal court and also subject to revocation of business licenses and occupancy permits.

If you have any questions about how the new St. Louis city minimum wage law affects your business, please contact the attorneys in our Employment & Labor Practice Group.

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