HB 567, a bill that could provide a critical lifeline to businesses struggling with the implementation of Proposition A, cleared its first hurdle in the Senate this week.
Proposition A mandates businesses provide paid sick leave and increases Missouri’s minimum wage to $15 an hour by 2026. After that, the minimum wage will continue to rise based on the rate of inflation.
On Wednesday, Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry, testified before the Senate General Laws Committee about Proposition A’s impact.
Corches said the new mandate will increase operating costs and liability for Missouri employers, forcing many to cut back on hours or reduce hiring. According to the Missouri Chamber’s annual CEO Survey, 37% of business leaders say Proposition A will discourage them from hiring new employees.
“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 said. “Even just anecdotally at the Missouri Chamber, we offer more than what’s required in Prop A to our employees, and we are going to have to completely rework our policy in order to comply.”
HB 567, sponsored by Rep. Sherri Gallick (R-Belton), would help business owners by removing all paid sick leave requirements. It maintains the $15 minimum wage but eliminates annual increases based on the Consumer Price Index.
The Missouri House has already passed HB 567, recognizing the need to address the unintended consequences of Proposition A. The legislation gives employers the flexibility to adjust workplace policies to meet the needs of their employees.
“Running or owning a business is not one-size-fits-all,” Gallick said. “All businesses don’t operate alike.”
Earlier this month, the Missouri Supreme Court heard oral arguments in a legal challenge to Proposition A. The Missouri Chamber joined other business groups, including Associated Industries of Missouri, the Missouri Forest Products Association, the Missouri Grocers Association, the Missouri Restaurant Association and the National Federation of Independent Business (NFIB), to file that petition with the Missouri Supreme Court.
With the court’s decision pending, the business community called on the Missouri Senate to take action to ensure Missouri’s business climate is not adversely impacted by Proposition A’s full implementation.
“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,” said Ray McCarty, president and CEO of Associated Industries of Missouri. “There were a lot of details contained in the ballot measure that voters never saw, and those are really the things that give us the most trouble.”
Want to make your voice heard? Use the Missouri Chamber’s Policy Action Center to contact your legislators and tell them about the impact of Proposition A on your business. For more information, contact Luke Reed, director of legislative affairs for the Missouri Chamber, at 573-634-3511 or lreed@mochamber.com.
