Missouri: New Paid Sick Leave Law in Effect

Applies to: All Employers with MO Employees
Effective: May 1, 2025

Discussion

Missouri’s voter-enacted Earned Paid Sick Time Law (Proposition A) went into effect on May 1, 2025, despite legal challenges and pending changes from the Missouri legislature.

Missouri Supreme Court Challenge and Legislative Action

On April 29, 2025, the Missouri Supreme Court upheld enactment of the law after several business groups challenged whether Proposition A violated the Missouri constitutional requirement that ballot measures have a “single subject” and “clear title.” In addition, the plaintiffs claimed the summary statement and fiscal note summary were insufficient and did not accurately identify the cost of the initiative. In its ruling, the Court found: (1) the summary statement was adequate and stated the consequences of the ballot initiative without bias, prejudice, deception, or favoritism; and (2) the plaintiffs did not show there was an irregularity in the ballot measure of sufficient magnitude to cast doubt on the election’s validity and fairness. The Court expressly stated that it did not address the validity of the ballot initiative itself because it lacked jurisdiction.

There have been a number of legislative bills seeking to amend or repeal the law. One of the more notable attempts to repeal the law was HB 567, which passed the Missouri House of Representatives but has been filibustered several times in the Senate. Because none of the legislative bills have yet passed, the Earned Paid Sick Time Law is currently in effect.

Proposition A Requirements

All private employers should now comply with the requirements of Proposition A. The Missouri Department of Labor & Industrial Relations (MDOL) also released FAQs clarifying specific requirements. The most notable requirements are summarized below.

Covered Employers.

All private Missouri employers are covered by the law, except private retail and service businesses whose annual gross volume sales made or business done is less than $500,000. Federal and state public employers are exempt.

Covered Employees.

Most employees are covered by Proposition A, subject to limited exception. The MDOL clarified that only hours worked in Missouri accrue earned paid sick time. Section 290.600 defines "employee" under the paid sick time law as "any individual employed in this state by an employer."

Accrual.

Employees accrue one hour of paid sick leave for every 30 hours worked. The hours do not need to be worked consecutively, nor do 30 hours need to be worked in one week. The employer is responsible for tracking the amount of hours to which each employee is entitled.

Usage.

The minimum cap on usage for employers with fewer than 15 employees is 40 hours per year. The minimum cap on usage for employers with 15 or more employees is 56 hours per year. An employer may permit employees to use more accrued leave through their written policies if they choose.

Carryover, Payout, and Frontloading.

Up to 80 hours of an employee’s accrued, unused paid sick leave must carry over into the following year. As an alternative to allowing carryover, employers may elect to pay out unused sick leave balances at the end of the year, as long as the employer provides employees with the full amount of leave required for immediate use at the beginning of the following year.

Covered Uses.

An employee may use paid sick leave for their own or a family member’s illness, injury, or health condition, or if they require medical care, diagnosis, or treatment, including preventative care. Leave may also be used when a place of employment or school district has been ordered closed due to a public health emergency, or if the employee or family member needs to attend to matters relating to domestic violence, sexual assault, or stalking.

Documentation.

Employers may require reasonable documentation when three or more consecutive days of paid sick leave are taken.

Employer PTO Policies.

If a paid time off policy already in existence makes available an amount of paid leave sufficient to meet the accrual requirements and may be used for the same purposes and under the same conditions as earned paid sick time, they are not required to change or provide additional earned paid sick time.

Posting and Notice.

A required template poster and notice have been provided for use by employers. Employees must receive the written notice of rights within 14 days of hire. Employers must also have a written policy that includes procedures for employees to give notice of the need for leave. There are also recordkeeping requirements.

Action Items

1. Review the paid sick leave law here and the FAQs here.
2. Implement a paid sick leave policy or update existing policies for compliance.
3. Begin accruing paid sick leave as of May 1, 2025.
4. Provide required posting and notice to employees.
5. Have appropriate personnel trained on the requirements.

As federal policies evolve, rely on our team of compliance leaders to help you stay on top of key actions, pending legislation, and regulatory changes that may impact your organization. Visit OneDigital's resource page for real-time updates: Federal Policy Updates for Employers: What to Watch in 2025.