JEFFERSON CITY — Missouri's minimum wage is set to increase 15 cents to $7.85 an hour next year.

The Missouri Department of Labor announced the hike from the current $7.70 an hour. The increase takes effect Jan. 1.

Tipped employees also must be paid at least $7.85 an hour next year. Employers must pay at least half that and need to make up the difference if employees don't make at least that much with tips.

The increase is the result of a law approved by voters 10 years ago. That measure set Missouri's minimum wage at $6.50 an hour in 2007, with an annual cost-of-living adjustment if necessary.

Missouri's minimum wage has gradually risen since then because of inflation.

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