ST. LOUIS _ A new minimum wage of $10 per hour for most jobs in St. Louis will take effect Friday, Mayor Lyda Krewson's office announced Thursday.
The ordinance for the new wage _ which is well above the minimum of $7.70 in the rest of Missouri and $8.25 in neighboring downstate Illinois _ was passed in 2015 but held up in court until now.
Under the ordinance, the wage will rise again on Jan. 1, 2018, to $11 an hour.
"The City of St. Louis is mailing notices to employers and expects employers will voluntarily comply with the law," said the statement from Krewson's office. "Noncompliance ... is subject to prosecution in Municipal Court, and also may be subject to revocation of business licenses and occupancy permit."
The new minimum won't apply to businesses that gross under $500,000 per year or employ fewer than 15 workers. It doesn't apply to employees who work less than 20 hours per calendar year.
The change will put St. Louis' minimum wage well above that of most states, and on par with many larger cities that have set their own rates. Chicago's current rate is $10.50 an hour and is set to rise to $11 on July 1.
St. Louis passed its minimum wage increase in 2015, but business groups sued, saying St. Louis shouldn't be allowed to set a higher rate than the state rate because it would cause regulatory confusion. A St. Louis Circuit Court agreed and approved an injunction preventing the new rate from going into effect.
On appeal, the Missouri Supreme Court recently ruled in the city's favor. With that, all that was needed to put the new minimum into effect was for the circuit court to lift its injunction, something the court announced Thursday morning that it would do that day.
Supporters of St. Louis' increase say it will provide a living wage to the lowest-paid workers.
"Today 35,000 St. Louis workers received a long overdue raise," National Employment Law Project General Counsel Paul Sonn said in a statement, noting that some 40 other U.S. cities and counties that have adopted local minimum wages. "The extra $1,800 a year the average St. Louis worker will earn will help tens of thousands of struggling families _ and help the economy as workers spend their paychecks at local businesses."
Opponents say it will drive businesses and jobs out of the city, hurting the very workers it's intended to help.
"This move will raise labor costs up to 25 percent for some St. Louis City employers," Missouri Chamber president and CEO Dan Mehan said in a statement. "In the short run, it will require businesses to scramble to comply with the new law. In the long run, it will cost jobs and set an already struggling St. Louis City economy even further behind."
Earlier this year, Missouri House lawmakers acted quickly on a proposal to nullify the minimum wage increase before the circuit court could lift the injunction. But the bill, which would require all Missouri cities to stick to the statewide standard, has stalled in the Senate.
Senate Majority Leader Mike Kehoe, a Republican from the capital of Jefferson City, said he had expected the Senate to take up the measure this week, echoing concerns that a patchwork on minimum wages throughout the state would hurt local businesses. "It would be a nightmare," Kehoe said.
But the Senate hasn't acted on any bills beyond the state budget, after a group of senators vowed on Monday to block Senate business until ethics reform is addressed. Should they take up the minimum wage bill before session ends on May 12, it's likely to be a nonstarter with Senate Democrats, who argue cities have the right to set a living wage for their residents.
