Missouri Election Updates: The Passing of Proposition A

Missouri’s 2024 legislative session may have been quiet on the employment law front, but the state’s voters made a big splash with Missouri Proposition A. Here’s what employers need to know.

MINIMUM WAGE

Voters approved amending Missouri law to increase the minimum wage to $13.75 per hour effective January 1, 2025. Effective January 1, 2026, the minimum wage increases to $15.00 per hour. Missouri Proposition A also includes increases each subsequent year effective January 1 adjusted based on changes to the cost of living as reflected in the Consumer Price Index for Urban Wage Earners and Clerical Workers which is published by the U.S. Department of Labor. If the federal minimum wage ever exceeds Missouri minimum wage, then Missouri’s minimum wage will mirror the federal rate.

MANDATED PAID SICK LEAVE

Effective May 1, 2025, Missouri employers must provide their employees paid sick leave at a rate of one hour for every 30 hours worked.

Covered Employer. The law applies to all Missouri employers with differences in accrual based on the size of the employer.

Covered Employee. The law applies to all employees that are employed in the state. The law does not address remote workers whose work is directed from the state.

Qualifying Reasons. Paid sick leave can be used for the employee’s own medical and mental health care, care of a family member who needs care or treatment, or for public health emergencies and certain types of domestic violence.

Accrual. Employers with 15 or more employees must provide one hour of earned paid sick time for every 30 hours worked, but employees can be capped on usage to 56 hours per year. Employers with fewer than fifteen hours must provide one hour of earned paid sick time for every 30 hours worked, but employees can be capped on usage to 40 hours per year.

Carryover. Employers must allow employees to carry over at least 80 hours of accrued, unused sick leave from year to year.

Frontloading. Employers can frontload paid sick leave, but unused sick leave must be paid out at the end of year and employees cannot carry over unused leave.

Interaction with Existing PTO Policies. Employers who already provide PTO that meets the minimum requirements of the law do not have to provide additional paid sick leave.

Action Items

1. Update payroll processes to account for new minimum wage.
2. Review and update leave policies to include paid sick leave.
3. Update procedures to track time worked for accrual purposes.
4. Train appropriate personnel on the requirements.

Learn more about OneDigital’s Compliance Consulting. Not sure where to start? Contact your local Missouri office.