Missouri Voters Approve Proposition A: Minimum Wage Increases and Mandatory Paid Sick Time to Begin in 2025
Missouri voters’ approval of statewide ballot initiative Proposition A (Prop A) will usher in significant changes to the state’s minimum wage law and, for the first time in state history, mandate employers to provide paid sick time. Because certain requirements will take effect as soon as January 1, 2025, employers in Missouri will need to act quickly to stay in compliance with state law. Below, we highlight the most notable changes and approaching deadlines to keep in mind as Prop A takes effect.
Minimum Wage Increases
Prop A will increase Missouri’s minimum wage to $15 an hour by January 2026, beginning with an incremental raise to $13.75 an hour that takes effect on January 1, 2025. After 2026, the minimum wage will be adjusted for inflation each January. State governmental entities, including school districts and public higher education institutions, are exempt from the minimum wage increases set by Prop A. See Mo. Rev. Stat. § 290.502.
Establishment of Mandatory Paid Sick Time
Employers in Missouri will also need to implement paid sick leave policies by May 1, 2025. See Mo. Rev. Stat. § 290.603(4). Pursuant to Prop A, all employees of non-exempted employers will accrue one hour of paid sick leave for every 30 hours worked. Id. § 290.603(1)-(2). If the employer has less than 15 employees, those employees may not use more than 40 hours of earned paid sick time per year. Id. § 206.603(2). If the employer has 15 or more employees, those employees may not use more than 56 hours of earned paid sick time per year. Id. § 206.603(1). For purposes of determining an employers’ number of employees, all employees paid on a full-time, part-time, or temporary basis must be counted. Id. § 206.603(3.). Up to 80 hours of accrued paid sick time may roll over to the next year, but this does not permit employees to exceed the yearly limit on paid sick time (unless the employer sets a higher limit). Id. § 206.603(4)(C). Alternatively, the employer can elect to pay the employee for any unused earned sick time at the end of the year. Id. Certain employees are exempt from the new paid sick time provisions, including: (1) retail or service establishments where the annual gross volume of sales or business done is less than $500,000, and (2) state governmental entities. Id. § 290.600(5)(I)-(J). In all cases, an employer is not required to establish a new policy if it already provides a paid time off program that meets or exceeds Prop A’s guaranteed minimums. Id. § 206.603(5).
Prop A’s mandatory paid leave provisions place other requirements on employers as well. For example, no later than April 15, 2025, employers must give employees written notice about the new paid sick leave provisions and display a poster in a conspicuous and accessible place outlining the same. Id. § 290.612(1)-(2). Additionally, employers will have to maintain records of the hours worked by each employee and the amount of paid sick time taken by each employee for at least three years. Id. § 290.615(1). These records are subject to inspection by the Missouri Department of Labor and Industrial Relations. Id. § 290.615(2).
In short, Prop A brings about significant changes to the state’s minimum wage and paid sick time laws. It is therefore important for employers in Missouri to stay up to speed on these developments and adjust policies ahead of the fast-approaching 2025 deadlines.
Minimum Wage Increases
Prop A will increase Missouri’s minimum wage to $15 an hour by January 2026, beginning with an incremental raise to $13.75 an hour that takes effect on January 1, 2025. After 2026, the minimum wage will be adjusted for inflation each January. State governmental entities, including school districts and public higher education institutions, are exempt from the minimum wage increases set by Prop A. See Mo. Rev. Stat. § 290.502.
Establishment of Mandatory Paid Sick Time
Employers in Missouri will also need to implement paid sick leave policies by May 1, 2025. See Mo. Rev. Stat. § 290.603(4). Pursuant to Prop A, all employees of non-exempted employers will accrue one hour of paid sick leave for every 30 hours worked. Id. § 290.603(1)-(2). If the employer has less than 15 employees, those employees may not use more than 40 hours of earned paid sick time per year. Id. § 206.603(2). If the employer has 15 or more employees, those employees may not use more than 56 hours of earned paid sick time per year. Id. § 206.603(1). For purposes of determining an employers’ number of employees, all employees paid on a full-time, part-time, or temporary basis must be counted. Id. § 206.603(3.). Up to 80 hours of accrued paid sick time may roll over to the next year, but this does not permit employees to exceed the yearly limit on paid sick time (unless the employer sets a higher limit). Id. § 206.603(4)(C). Alternatively, the employer can elect to pay the employee for any unused earned sick time at the end of the year. Id. Certain employees are exempt from the new paid sick time provisions, including: (1) retail or service establishments where the annual gross volume of sales or business done is less than $500,000, and (2) state governmental entities. Id. § 290.600(5)(I)-(J). In all cases, an employer is not required to establish a new policy if it already provides a paid time off program that meets or exceeds Prop A’s guaranteed minimums. Id. § 206.603(5).
Prop A’s mandatory paid leave provisions place other requirements on employers as well. For example, no later than April 15, 2025, employers must give employees written notice about the new paid sick leave provisions and display a poster in a conspicuous and accessible place outlining the same. Id. § 290.612(1)-(2). Additionally, employers will have to maintain records of the hours worked by each employee and the amount of paid sick time taken by each employee for at least three years. Id. § 290.615(1). These records are subject to inspection by the Missouri Department of Labor and Industrial Relations. Id. § 290.615(2).
In short, Prop A brings about significant changes to the state’s minimum wage and paid sick time laws. It is therefore important for employers in Missouri to stay up to speed on these developments and adjust policies ahead of the fast-approaching 2025 deadlines.
