Missouri’s journey toward implementing paid sick leave has been anything but straightforward. Following the approval of Proposition A in November 2024, which mandated paid sick leave for employees statewide, recent legislative actions have introduced significant uncertainty.
Proposition A: A Brief Recap
Proposition A, passed with 58% voter support, introduced two major changes:
-
Minimum Wage Increase: The state minimum wage rose from $12.30 to $13.75 per hour on January 1, 2025, with a further increase to $15 per hour slated for 2026.
-
Paid Sick Leave: Starting May 1, 2025, employees would accrue one hour of paid sick leave for every 30 hours worked. Employers with 15 or more employees could limit annual usage to 56 hours, while smaller employers could cap it at 40 hours.
Legislative Pushback
Despite voter approval, Missouri’s legislature has moved to overturn these provisions. On March 26, 2025, a state Senate committee advanced House Bill 567, aiming to repeal the paid sick leave mandate and halt the inflation-based adjustments to the minimum wage. Representative Sherri Gallick, the bill’s sponsor, argues that Proposition A imposes undue burdens on businesses, particularly small enterprises.
Business Community’s Response
Various business groups, including the Missouri Chamber of Commerce and Industry, have expressed concerns about the law’s impact on operational costs and administrative complexities. They contend that a uniform paid sick leave policy may not suit the diverse needs of businesses across the state.
Legal Challenges
In addition to legislative efforts, the law faces judicial scrutiny. On March 12, 2025, the Missouri Supreme Court heard arguments challenging the constitutionality of Proposition A. Opponents claim the measure violates the state’s single-subject rule and lacked a comprehensive fiscal note. A decision from the court is pending.
Current Status and Employer Guidance
As of now, Proposition A remains set to take effect on May 1, 2025. Employers are advised to prepare for compliance by:
-
Providing Written Notice: Inform employees about their paid sick leave rights by April 15, 2025.
-
Displaying Posters: Place informational posters in the workplace summarizing the law’s provisions.
-
Policy Review: Evaluate and update existing leave policies to align with the new requirements.
Looking Ahead
The situation remains fluid, with potential changes arising from legislative actions or court rulings. Employers should stay informed and consult legal counsel to navigate this evolving landscape effectively.
Be Audit-Secure™!
