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ST. LOUIS — The minimum wage in Missouri will increase to $11.15 an hour on January 1, the state’s Department of Labor and Industrial Relations announced Wednesday.

All private businesses are required to pay the minimum wage, except retail and service businesses whose gross annual sales are less than $500,000.

Employers must also pay tipped employees at least half of the minimum wage, plus any amount necessary to bring the employee’s total compensation to $11.15 per hour.

The pay hike is part of Proposition B, which Missouri voters approved in November 2018. Proposition B raised the minimum wage to $8.60 in 2019 and then mandated an 85-cent increase each year through 2023.