Show-Me State Times

HB 567, a bill designed to mitigate the effects of Proposition A on businesses, passed its initial evaluation in the Senate this week. Proposition A requires businesses to provide paid sick leave and increase Missouri's minimum wage to $15 an hour by 2026. Subsequent to this, the wage will adjust based on inflation rates.

Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry, addressed the Senate General Laws Committee, highlighting the challenges posed by Proposition A. She mentioned that the new requirements would drive up operating costs and liabilities for employers, potentially leading to reduced working hours and hiring.

“I have heard countless stories from members and non-members across the state about how this is going to impact them. Whether they have 250 to 10 employees, the implementation of this is really unworkable,” Corches stated. Further, she shared that even the Missouri Chamber, which offers more than Proposition A requires to its employees, would need to revise its policies to comply.

Sponsored by Rep. Sherri Gallick (R-Belton), HB 567 proposes to remove all paid sick leave requirements while retaining the $15 minimum wage, without the annual increases tied to the Consumer Price Index. The Missouri House has already passed the bill, acknowledging a need to address the unintended effects of Proposition A. The bill aims to provide employers with the flexibility to adapt policies to suit their workforce.

“Running or owning a business is not one-size-fits-all,” Gallick remarked. “All businesses don’t operate alike.”

As the court's ruling is awaited, the business sector appeals to the Missouri Senate to prevent negative impacts from Proposition A's full activation. Ray McCarty, president and CEO of Associated Industries of Missouri, expressed hope for legislation that would deliver a sensible solution. “We hope to have a decision [from the court] soon, but in the meantime, we’re hopeful that legislation will pass that will bring some reasonable resolution to this,” McCarty said, pointing out that certain details in the ballot measure were not visible to voters and cause significant concern.

For more participation, the Missouri Chamber’s Policy Action Center encourages businesses to engage legislators regarding the repercussions of Proposition A. Contact Luke Reed, director of legislative affairs for the Missouri Chamber, for further information at 573-634-3511 or lreed@mochamber.com.