Subject: RE: minimum wage
From: "Minimum Wage" <[email-masked]>
To: <[email-masked]>
Date: Thu, 16 Oct 2008 09:06:10 -0500

MISSOURI DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS

LABOR NEWS 

Matt Blunt, Governor

 

Todd Smith , Director

FOR MORE INFORMATION CONTACT:  Wanda Seeney (573) 751-7500
FOR IMMEDIATE RELEASE:  August 28, 2008

Missouri's Minimum Wage Projected to Increase by 6.1 Percent on Jan. 1,
2009

Hourly Wage to Increase from $6.65 to $7.05 per Hour

JEFFERSON CITY, MO - Missouri's Minimum Wage Law, adopted by Missourians
in 2007, requires the Missouri Department of Labor and Industrial
Relations (DOLIR) Director to, on Sept. 30 of each year, make any
required adjustments to the minimum wage earnings based on changes in
the Consumer Price Index (CPI). This requires measuring the increase or
decrease in the cost of living percentage increase or decrease as of the
preceding July over the level as of July of the immediate preceding year
of the CPI for Urban Wage Earners and Clerical Workers (CPI-W) as
published by the U.S. Department of Labor (USDOL) with the amount of the
minimum wage increase or decrease rounded to the nearest 5 cents. The
next increase in Missouri's minimum wage rate will become effective on
Jan. 1, 2009. That new rate has been projected to be $7.05 per hour. For
tipped employees, the new rate will be a minimum of $3.525 per hour.

"The Department has begun receiving calls from businesses asking what
the new rate will be so they can take that into account as they begin
working on their budgets for next year," said Todd Smith, DOLIR
Director. "While we are not required to publish the information until
the end of September, it is doubtful the federal government will revise
their CPI numbers and we wanted to give employers as much lead time as
possible," Smith added.  

The U.S. Bureau of Labor Statistics has posted preliminary figures for
the month-ending July 2008, therefore enabling the Director to project
the effect of the Missouri minimum wage rate for Jan. 1, 2009. This
projection may be subject to change and will not become official until
Sept. 30, 2008. The CPI for Urban Wage Earners and Clerical Workers in
the Midwest Region for July 2008 currently is published at 206.038. The
CPI for July 2007 was 194.219. This represents an increase in the CPI of
11.189 or 6.1percent. This calculation and how it is applied to
Missouri's minimum wage rate is shown at the end of the press release.

The current minimum wage rate mandated by the USDOL (the federal minimum
wage rate) is $6.55. Since Missouri's current minimum wage rate and the
projected rate for Jan. 1, 2009, are both higher than the $6.55,
Missouri's Minimum Wage Rate is the prevailing rate that Missouri
employers are required to pay. The federal minimum wage rate will again
increase on July 24, 2009, to $7.25 per hour. If the above projected
rate of $7.05 for Missouri becomes final, the federal rate will exceed
Missouri's rate, and that will become the minimum wage rate that
Missouri employers are required to pay. 

 

Calculation of % increase between 2007 and 2008

CPI for July, 2008 *

206.038

Less CPI for July, 2007 *

194.219

Equals index point change

11.819

Divided by previous period CPI

194.219

Equals

0.061

Result multiplied by 100

0.061 X 100

Equals percent change

6.1%

 

Current Missouri minimum wage rate

$6.65

Multiplied by CPI percent change

$6.65 X 6.1%

Equals

$0.405

Result rounded to the nearest five cents

$0.40

Added to Missouri minimum wage rate

$6.65 + 0.40

New Missouri minimum wage rate **

$7.05

* The CPI information is published by the U.S. Bureau of Labor
Statistics and can be accessed at: 
http://data.bls.gov/cgi-bin/surveymost?cw (Select " Midwest Region All
Items, 1982-84=100 - CWUR0200SA0" and click "Retrieve Data")

** The new Missouri Minimum Wage Rate will be calculated again on Sept.
30, 2008, and will become final at that time. This new rate will not
become effective until Jan. 1, 2009. 

For more information about Missouri's Minimum Wage Statutes, visit the
Internet site http://www.dolir.mo.gov/ls/statutes/statutes.htm.

###

Information and Planning  *  421 East Dunklin  *  P.O. Box 504   *
Jefferson City, MO 65102-0504
573-751-7500  *  573-751-6552 (Fax)

Relay Missouri:  1-800-735-2966 (TDD)  1-800-735-2466 (Voice)

www.dolir.mo.gov <http://www.dolir.mo.gov/index.htm> 

 

 

________________________________

From: Mike [mailto:[email-masked]] 
Sent: Tuesday, October 14, 2008 6:03 PM
To: , Labor Standards
Subject: minimum wage

Hello,

Can you tell me what is expected in 2009 in regards to the Federal
minimum wage increasing.  Will the state be raised to equal it and will
there be a new poster for that?  The Federal isn't set to change until
July 24, 2009 so I realize there is plenty of time.  I would like to
know.  I appreciate any help you can lend.

Thank you,

Michael B
[email-masked]