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Show-Me State Times

Wednesday, December 25, 2024

Missouri business groups oppose Proposition A over increased wage and sick leave mandates

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Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry

Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry

Representatives from Missouri's business community have expressed opposition to Proposition A, a ballot initiative that they argue will raise the cost of dining out, grocery shopping, and other retail activities. This measure proposes increasing the state's minimum wage to $15 an hour by 2026, surpassing the current federal minimum wage of $7.25. Post-2026, further increases would be tied to inflation rates.

In addition to wage changes, Proposition A mandates paid sick leave for local businesses. It would impose new requirements on employers regarding employee leave policies, even affecting those already offering paid leave.

Key industry groups such as Associated Industries of Missouri, the Missouri Chamber of Commerce and Industry, the Missouri Grocers Association, the Missouri Restaurant Association, the Missouri Retailers Association, and the National Federation of Independent Business (NFIB) are urging a "NO" vote on November 5.

The proposition is seen as a threat to the state's 217,000 private sector employers who are already facing challenges due to inflation. The measure is expected to increase operational costs across all businesses and restrict employer autonomy over time-off policies.

The sick leave component of Proposition A is particularly contentious due to concerns about potential lawsuits against employers for "retaliatory personnel action." Critics argue that navigating these new regulations would be burdensome and possibly conflict with existing federal mandates introduced during the COVID-19 pandemic.

While acknowledging the importance of competitive wages and benefits for employees, these business organizations oppose additional government mandates which they believe do not foster job growth. They advocate voting against Proposition A to maintain stable consumer prices and support economic growth in Missouri.

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