Missouri lawmakers are considering much-needed legislation that will provide clarity for business owners struggling with the implementation of Proposition A.
Proposition A increases Missouri’s minimum wage to $15 an hour by 2026, well above the current federal minimum wage of $7.25. After 2026, the minimum wage will continue to increase based on the rate of inflation. Proposition A also requires employers to provide paid sick leave to employees.
This new mandate will increase the cost of doing business and increase liability for Missouri employers.
“Many business owners have reached out to me concerning the provisions of Proposition A, particularly the sick leave mandate,” Rep. Sherri Gallick (R-Belton) said. “Implementing this mandate will be burdensome, forcing some businesses to reduce their workforce or even close their doors entirely.”
HB 567, sponsored by Rep. Gallick, aims to alleviate business owners’ concerns by removing all paid sick leave requirements. It also delays the $15 minimum wage until 2028 and eliminates the provision tying the minimum wage to the Consumer Price Index.
“To be clear, I fully support individuals earning as much as they can and receiving enhanced benefits,” Gallick said. “However, I also believe that such matters should be decided between employees and employers, not mandated by the government.”
HB 567 would help address some of the unintended consequences of Proposition A and give employers the flexibility to tailor workplace policies to meet the needs of their workforce.
Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry, testified before the House Commerce Committee, sharing early data from the Missouri Chamber’s annual statewide survey of CEOs and business leaders.
“I strongly believe this proposition is a job killer, and I don’t say that to be inflammatory,” Corches said. “More than a third of Missouri business leaders say Prop A will cause them to hire fewer employees.”
In December 2024, 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 a petition with the Missouri Supreme Court in an effort to overturn Proposition A. Oral arguments in that case are set for March.
With the legal challenge pending, business leaders hope the Missouri General Assembly can take action to ensure Missouri’s business climate is not adversely impacted by Proposition A’s implementation.
“We’ll take any relief we can give to businesses at this point,” said Buddy Lahl, CEO of the Missouri Restaurant Association.
Looking to get involved? 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.
