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 hourly wage that will increase incrementally from $12.00 starting February 21, 2025, to $15.00 by January 1, 2029. Additionally, the bill mandates that the state treasurer will adjust the minimum wage annually beginning in 2030 based on the average annual percentage change in the Consumer Price Index, with a cap on increases of 3.5%. The unemployment rate threshold for wage increases has also been modified from 8.5% to 7.5%.

Furthermore, the bill revises the training wage for new employees under 20 years of age to 75% of the general minimum wage for the first 90 days of employment, replacing the previous fixed training wage of $4.25. It also lowers 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