The bill amends the Workforce Opportunity Wage Act by establishing a new minimum wage schedule and adjusting provisions related to wage increases. Specifically, it sets the minimum hourly wage to $12.00 starting February 21, 2025, with subsequent increases to $12.50 in 2026, $13.00 in 2027, $14.00 in 2028, and $15.00 in 2029. Additionally, beginning in January 2030, the state treasurer will adjust the minimum wage annually based on the average annual percentage change in the Consumer Price Index for the preceding five years, with a cap on increases of 3.5%. The bill also modifies the unemployment rate threshold that would prevent wage increases, lowering it from 8.5% to 7.5%.

Furthermore, the bill revises the provisions for training wages 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 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 a provision 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