Local business owner discusses impact of minimum wage increase
January 5, 2022
Ezra DeVore
Across the nation, many small businesses and workers continue their financial recovery from the Covid-19 pandemic. In the wake of an economy and workforce that will not soon forget the pandemic’s ongoing impact, 2022 is a critical time for small businesses.
A minimum wage increase took place in Missouri on January 1 which raised hourly rates from $10.30 to $11.15. The increase is a result of Proposition B, approved by voters in 2018. Proposition B affirms a minimum wage increase on the first of every year by 85 cents through 2023. On January 1, 2023, the minimum wage in Missouri will rise to $12 per hour.
Questions have arisen about this event’s impact on Missouri’s economy, and what it portends for the future of small businesses.
Because most businesses are already paying higher rates than the minimum wage, this may not have an immediate impact on small businesses. However, because the state’s minimum wage rarely constitutes or surpasses a livable wage, and with the cost of living and cost of conveniences also rising, a problem arises in attempting to retain employees, says Whitley Pharmacy owner, Logan Whitley.
“I’ve always tried to keep my pay rates above the minimum wage,” he said. “However, if the increase surpasses $12 an hour in 2023, there might be a problem. From a personal standpoint, it hasn’t affected me that much as far as what I pay my employees, but it has made it harder to find employees, because larger corporations - Walmart and places that are in multiple states - they’re all raising their personal minimum wage. Then it affects us locally when places like that, for minimum skill jobs, are paying $15 an hour. That makes it difficult for local employers to match that.”
Whitley says this may also pose a problem in the future, if employers start offering more part-time positions and fewer full-time jobs.
“That’s going to present problems in the workplace,” Whitley said.
“One thing an increased minimum wage will also do is affect the ability of small businesses, like mine, to give a yearly salary increase, which is vital to a healthy small business model. That’s an aspect that helps us keep employees long term. If we must start full-time employees at a higher starting wage, we will be unable to entice them to stay without offers of yearly increases,” he added.
“We aren’t there yet, but it’s getting there,” Whitley concluded.
Across the nation, many small businesses and workers continue their financial recovery from the Covid-19 pandemic. In the wake of an economy and workforce that will not soon forget the pandemic’s ongoing impact, 2022 is a critical time for small businesses.
A minimum wage increase took place in Missouri on January 1 which raised hourly rates from $10.30 to $11.15. The increase is a result of Proposition B, approved by voters in 2018. Proposition B affirms a minimum wage increase on the first of every year by 85 cents through 2023. On January 1, 2023, the minimum wage in Missouri will rise to $12 per hour.
Questions have arisen about this event’s impact on Missouri’s economy, and what it portends for the future of small businesses.
Because most businesses are already paying higher rates than the minimum wage, this may not have an immediate impact on small businesses. However, because the state’s minimum wage rarely constitutes or surpasses a livable wage, and with the cost of living and cost of conveniences also rising, a problem arises in attempting to retain employees, says Whitley Pharmacy owner, Logan Whitley.
“I’ve always tried to keep my pay rates above the minimum wage,” he said. “However, if the increase surpasses $12 an hour in 2023, there might be a problem. From a personal standpoint, it hasn’t affected me that much as far as what I pay my employees, but it has made it harder to find employees, because larger corporations - Walmart and places that are in multiple states - they’re all raising their personal minimum wage. Then it affects us locally when places like that, for minimum skill jobs, are paying $15 an hour. That makes it difficult for local employers to match that.”
Whitley says this may also pose a problem in the future, if employers start offering more part-time positions and fewer full-time jobs.
“That’s going to present problems in the workplace,” Whitley said.
“One thing an increased minimum wage will also do is affect the ability of small businesses, like mine, to give a yearly salary increase, which is vital to a healthy small business model. That’s an aspect that helps us keep employees long term. If we must start full-time employees at a higher starting wage, we will be unable to entice them to stay without offers of yearly increases,” he added.
“We aren’t there yet, but it’s getting there,” Whitley concluded.
