The Kansas City, MO City Council has passed an ordinance that will increase the minimum wage rate. Employers within the corporate limits of Kansas City, MO and with a total of 15 employees must pay their employees $8.50 per hour beginning on August 24th. The following minimum wage rates have been established under the ordinance:
- January 1, 2017 – $9.82 per hour
- January 1, 2018 – $10.96 per hour
- January 1, 2019 – $11.98 per hour
- January 1, 2020 – $13.00 per hour
As for tipped employees, he or she must be paid no less than 50% of the minimum wage established by the State of Missouri. If employers consider tips as part of employee wages, the tips combined with the minimum wage must not equal less than the determined minimum wage. After the last established minimum wage rate in 2020, the rates will be adjusted based on the cost of living. Using the Consumer Price Index for Urban Earners and Clerical Workers (CPI-W), the Kansas City Human Relations Department will determine the cost of living. The new rates must then be posted on the city’s website at least 90 days before each adjustment is made. Employers must also post these new rates in the workplace for employees to see by April 1, 2016.
Currently, a notice of referendum has been filed by a committee of petitioners, preventing it from going into effect. If the referendum is made valid, petitioners have until August 25th to submit final petitions. If sufficient signatures are collected, the ordinance will not become law until an election is held, in where voters would have the power to decide. Compliance Poster Company will continue to monitor this pending change, so make sure to visit our website soon for any new developments!