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Sunday, April 20, 2025

Missouri House approves bill to ease Proposition A's impact on businesses

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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

The Missouri House of Representatives has passed HB 567, a bill aimed at easing the impact of Proposition A on businesses. This legislation is designed to assist business owners who are struggling with the implications of the proposition. The bill was sponsored by Representative Sherri Gallick, a Republican from Belton.

Proposition A, which was previously passed, requires businesses to provide paid sick leave to employees and calls for an increase in Missouri's minimum wage to $15 an hour by 2026. This amount is significantly higher than the existing federal minimum wage of $7.25. Following 2026, the minimum wage is set to increase in line with inflation rates.

Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry, expressed concern about the mandate's impact on businesses. "We have heard from hundreds of business owners across the state. Implementing this mandate is not just a burden – it will force many to reduce their workforce or close their doors entirely," Corches noted. She believes that HB 567 will mitigate some of Proposition A's unintended consequences and give employers more flexibility in defining workplace policies suitable for their workforce.

HB 567 aims to assist business owners by eliminating the mandatory paid sick leave requirements. While it retains the $15 minimum wage by 2026, it removes the planned annual adjustments based on the Consumer Price Index.

The bill will now proceed to the Missouri Senate for further consideration.

Corches emphasized the urgency of legislative intervention: "Without legislative action, Proposition A will be a job killer. In fact, more than a third of Missouri business leaders say Prop A will cause them to hire fewer employees." She called on the Senate to act quickly to prevent any adverse effects on Missouri’s economic climate due to the implementation of Proposition A.

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