minimum wage usually goes up, not down. Somebody needs to tell lawmakers in St. Louis, Missouri that. While cities all over the country have been raising their minimum wage, St. Louis is lowering theirs. In January 2018 the minimum pay was going to increase to $11, but that won't happen then or anytime soon. To make the matter worse, the minimum wage is going down from what it is. It is estimated that about 38,000 workers will be disappointed because their pay will go down instead of going up.
Workers' pay
The pay in St. Louis, Missouri went up to $10 an hour two months ago, but it is set to go down to $7.70 per hour on August 28, 2017.
Missouri Governor Eric Greitens says raising the pay to $10 an hour was a mistake. He said that he will allow a bill blocking the city’s increase to become law without his signature. As governor, he is allowed to do that.
Employees in St. Louis began receiving $10 an hour after a two-year legal battle against those who opposed the increase in 2015. Then under the city's law, the wage was set to go up again in January 2018 to $11 an hour and to increase every year because of inflation.
Cities and states
Cities and states around the country are allowed to establish their own minimum wage increases. That's why they are different in some cities, even within the same state. For examples, workers in Seattle, Washington get $15 an hour while workers in St.
Louis will get only half of that.
As of January 1, 2017, nineteen states received a higher minimum wage. Seven of those states received an automatic increase based on the cost of living. Five states increased their rates because of residents' votes. The legislation was passed so that the other seven states could get an increase.
Three more states changed their rates on July 1, 2017. However, none of the states included Missouri to help those disappointed employees.
Many people don't realize it, but pay rates vary a great deal across many different jurisdictions. Currently, the American federal minimum wage is $7.25 per hour. However, Louisiana and Tennessee do not abide by the law governing pay rates.
They could decide to pay more.
Also, people might not realize that employees can be paid more if employees decide to do so. Usually, restaurant workers are paid at the lower rate and their tips supplement their pay. This also happens when people work on a base salary, but they get more money when they work on commission.