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 and those under 18. Specifically, it establishes a new minimum wage schedule that begins at $12.00 per hour on February 21, 2025, and increases incrementally to $15.00 by January 1, 2029. Additionally, the bill mandates that starting in 2030, the state treasurer will adjust the minimum wage annually based on the average annual percentage change in the Consumer Price Index, with a cap on increases of 3.5%. The bill also lowers the unemployment threshold that would prevent wage increases from 8.5% to 7.5%.

Furthermore, the bill modifies the training wage for new employees under 20 years of age, allowing employers to pay 75% of the general minimum wage for the first 90 days of employment, instead of a fixed rate of $4.25. It also sets the minimum wage for employees under 18 at 75% of the general minimum wage. Employers are prohibited 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