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Missouri small businesses adapt to looming state, federal minimum wage increases

Small businesses adapt to looming state and federal minimum wage increases
Lily's Play-N-Stay
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KSHB 41 reporter Ryan Gamboa covers Miami County in Kansas and Cass County in Missouri. He also covers agricultural topics. Share your story idea with Ryan.

At Lily's Play-N-Stay, the service is all about the pets.

"We love what we do," said owner Amy Klein.

Small businesses adapt to looming state and federal minimum wage increases

For four years, Lily's has operated in downtown Belton, providing pet boarding and grooming services.

The inspiration came from Klein's late dog, Lily.

The full-service pet salon and hotel operates with 13 total employees, including a holistic veterinarian on-site.

Lily's Stay and Play
Lily's Play-N-Stay

The top priority is the clients and their pets; employees are a close second.

"Labor is our most expensive thing," Klein told KSHB 41. "We run anywhere from 40-50% labor in our overall revenue. That's because we must have people here caring for the animals."

Klein said the business has seen its cost of product increase, from the grooming products to building overhead.

Lily's Play-N-Stay
Lily's Play-N-Stay

"With the increased costs, we had to do a price increase to be able to support that," she said.

Lily's implemented a 10% price increase on its services.

RELATED | Groups react to Missouri lawmakers taking action on voter-approved measures

In November, Missourians passed Proposition A, which supported a statewide minimum wage increase — $13.75 starting Jan. 1, 2025, then another increase to $15 in January 2026.

april 2 election preview.JPG
A sign directs voters to the Kansas City Election Board ahead of the April 2 special election.

In early June, Sen. Josh Hawley (R-MO), alongside Sen. Peter Welch (D-VT), introduced legislation to bump the federal minimum wage to $15.

RELATED | Senators Hawley, Welch introduce bill to bump federal minimum wage to $15 per hour

“I will absolutely support paying my employees more, I just have to be realistic that things [are] going to go up to be able to support it,” Klein said.

Lily's Play-N-Stay
Lily's Play-N-Stay, Walter the dog

It’s why Klein is planning ahead, taking several steps to add quality of life benefits for employees.

Lily’s now offers bonuses and a 401(k) retirement program.

“I’ve had to be open and honest with my clients, letting them know about our price increases,” she said. “I haven’t had much pushback because I think they understand. They want the people taking care of their pets to also be well taken care of.”

Lily's Play-N-Stay
Lily's Play-N-Stay

In Proposition A’s lifetime, the Missouri Legislature moved to repeal parts of the minimum wage and paid sick leave proposal voters approved in November 2024, pending the governor’s signature.

The move to increase minimum wage in the Show-Me State is one the Missouri Chamber of Commerce has strongly opposed, citing it would break the system of free enterprise, according to a June 13, 2025, press release.

Jefferson City, Mo.

The Missouri Capitol in Jefferson City.

A Missouri Chamber of Commerce survey reported 37% of business leaders said the original Proposition A would discourage them from hiring new employees.

In its analysis, MCC suggests the new Prop A proposal could lead to an estimated $6 billion in GDP loss in Missouri’s manufacturing sector and nearly $20 billion in Missouri’s overall GDP.

Josh Hawley
Sen. Josh Hawley (R-MO) questions Department of Justice Inspector General Michael Horowitz during a Senate Committee On Homeland Security And Governmental Affairs hearing at the U.S. Capitol on Dec. 18, 2019, in Washington, D.C.

At the federal level, Hawley told KSHB 41 in a statement, “The woke corporations have been eager to raise prices on everybody and employ as many illegals as possible—but they don’t want to pay Americans a good wage. That should change. If they can afford to pay their CEOs millions, they can afford to pay hard-working Americans a decent wage.” 

Klein told KSHB 41 her business is simply planning and adjusting with the times.

Lily's Play-N-Stay
Lily's Play-N-Stay

“If and when it goes to $15, I am going to need to hire at that and a little higher for those people who are dedicated," Klein said. "Our challenge is finding the right people at a price that we can afford. Keep shopping local and keep going to the little places; that’s what keeps the little guys like us alive."

For more information on Lily's Play-N-Stay and its not-for-profit efforts, click here.