Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry
Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry
In November, Missouri voters approved Proposition A, a measure that will raise the state's minimum wage to $15 an hour by 2026. This proposition also mandates employers to provide paid sick leave to their employees.
The Missouri Chamber of Commerce and Industry plans to offer resources for employers in the coming weeks. Meanwhile, some key details about Proposition A have been clarified.
The minimum wage is set to increase to $13.75 per hour on January 1, 2025, with further annual increments of $1.25 until it reaches $15.00 per hour in 2026. From 2027 onwards, adjustments will be made based on changes in the Consumer Price Index.
Certain entities such as governmental bodies, political subdivisions, school districts, and educational institutions are exempt from this wage increase.
Proposition A stipulates that all employers must provide one hour of paid sick leave for every 30 hours worked. Employees at businesses with more than 15 workers can use up to 56 hours of paid sick leave annually, while those at smaller businesses can use up to 40 hours per year. Accrual of paid sick time begins on May 1, 2025, with mandatory employer notification by April 15, 2025.
Employees are allowed to carry over up to 80 hours of unused sick time each year. Employers may choose to frontload the expected annual sick leave at the start of the year.
Sick leave can be used for personal or family health care needs, closures due to public health emergencies, or addressing issues related to domestic violence or similar circumstances.
The definition of "family member" under Proposition A is broader than federal guidelines and includes various familial relationships such as children under parental care duties and individuals involved in romantic relationships with the employee.
Businesses face potential liabilities if they do not comply with these regulations. Retaliation against employees using earned sick time is prohibited and could result in legal fees and costs for denied leave being imposed on employers.
The Missouri General Assembly has the authority to modify or overturn Proposition A since it amends state law rather than the constitution.
Several organizations including Associated Industries of Missouri and others are considering legal actions or legislative changes against Proposition A due to concerns about its impact on unemployment rates and cost of living.
For those interested in reading more about Proposition A's specifics, its full text is available on the Missouri Secretary of State’s website.