The bill amends the Workforce Opportunity Wage Act by updating the minimum wage rates and making adjustments to the wage structure for employees under 20 years of age. Specifically, it establishes a new minimum hourly wage that will increase incrementally from $12.00 starting February 21, 2025, to $15.00 by January 1, 2029. The bill also modifies the annual adjustment mechanism for the minimum wage, changing the adjustment year from 2019 to 2030 and specifying that the adjustment must not exceed 3.5%. Additionally, it revises the unemployment rate threshold that would prevent a wage increase from taking effect, lowering it from 8.5% to 7.5%.

Furthermore, the bill introduces a new training wage for employees under 20 years of age, allowing employers to pay 75% of the general minimum wage for the first 90 days of employment, replacing the previous training wage of $4.25. It also reduces the minimum wage for employees under 18 years of age from 85% to 75% of the general minimum wage. The bill includes provisions to prevent employers from displacing current employees to hire individuals at the training wage, with violations subject to a civil fine of up to $1,000. Lastly, the bill repeals the improved workforce opportunity wage act established in 2018.

Statutes affected:
Substitute (H-2): 408.414, 408.931, 408.945
House Introduced Bill: 408.414, 408.931, 408.945
As Passed by the House: 408.414, 408.931, 408.945