JEFFERSON CITY, Mo. (CN) – The Missouri House has voted to cap the state’s minimum wage at the federal rate. The bill reverses a 2006 voter-approved measure that allowed minimum wage increases based on inflation.
Supporters claim the cap will help Missouri businesses compete. They claimed regular minimum wage increases would force businesses to lay off workers and raise prices.
Opponents said minimum wage increases could boost Missouri’s economy by putting money in workers’ hands. They added that the voters had spoken in 2006.
Missouri’s minimum wage is $7.25 per hour, the same as the federal minimum wage.
The bill needs another vote before moving on to the state Senate.