May 15, 2025 6 min read

Missouri lawmakers deliver relief to employers with Proposition A reform

Legislation to bolster utilities, improve public safety among other pro-business priorities passed during the 2025 legislative session.

During the 2025 legislative session, the Missouri General Assembly stood up for business owners burdened by Proposition A’s paid sick leave mandate. By passing Proposition A reform, lawmakers protected jobs and safeguarded Missouri’s overall economic competitiveness.

Employers across Missouri urged lawmakers to pass HB 567, sponsored by Rep. Sherri Gallick (R-Belton) and handled by Sen. Mike Bernskoetter (R-Jefferson City). The bill provides targeted relief by removing Proposition A’s onerous paid sick leave mandate while maintaining the $15 minimum wage. It eliminates annual increases based on the Consumer Price Index, giving employers greater predictability in managing labor costs.

The legislation will take effect on August 28, pending Gov. Mike Kehoe’s signature.

The Missouri Chamber of Commerce and Industry led the fight for HB 567, organizing a grassroots coalition of more than 550 businesses from across the state that advocated for Proposition A reform.

“Missouri employers value their employees as their greatest asset and are committed to providing competitive wages and benefits,” said Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry. “But from day one, our position has been clear: Business owners know best how to run their own companies, and burdensome mandates only hinder economic growth. HB 567 gives employers the flexibility to make decisions that best fit their teams, creating opportunity and strengthening Missouri’s economy.”

In addition to advocating for Proposition A reform, the Missouri Chamber used its strength to turn back several anti-business bills and pass key priorities, including legislation to bolster Missouri’s utility infrastructure, improve public safety and reform the legal climate.

“We appreciate the legislative leadership for listening to the needs of Missouri’s business community and prioritizing legislation that supports job creators across the state,” said Stet Schanze, president of Gray Manufacturing and chairman of the Missouri Chamber Board of Directors.

Missed opportunity

For the third year in a row, lawmakers failed to pass legislation to address another top concern of the business community: access to child care.

HB 269, sponsored by Rep. Brenda Shields (R-St. Joseph), passed quickly in the House of Representatives. This bill would have established an innovative tax credit package designed to increase access to affordable, high-quality child care. Despite wide bipartisan support for the proposed legislation, a small number of senators led a late-night filibuster to block HB 269.

Child care is not just an issue for working parents; it’s an economic issue. According to a report from the U.S. Chamber of Commerce Foundation and the Missouri Chamber, Missouri misses out on an estimated $1.35 billion annually, including $280 million in lost tax revenue, due to child care issues.

“Improving access to child care supports working families and businesses alike. In fact, it’s vital to our state’s economic growth,” Corches said. “In our most recent CEO survey, 85% of business leaders said the expense and difficulty in finding child care keeps a significant number of Missourians out of the workforce. We’re disappointed that a small number of lawmakers blocked progress on this statewide issue.”

Bolstering the utility infrastructure

The Missouri Chamber used its strength to help pass a comprehensive package to bolster Missouri’s utility infrastructure and spur economic development. 

SB 4, sponsored by Sen. Mike Cierpiot (R-Lee’s Summit) and handled by Rep. Josh Hurlbert (R-Smithville), contains several important provisions, including a new ratemaking standard known as future test year. This will create more certainty for utility companies, allowing them to replace aging infrastructure and increase capacity at an aggressive pace. The bill also includes a natural gas discount to help Missouri attract large economic development projects.

“Reliable, resilient and affordable energy is key to retaining and attracting business to the state,” Corches said. “The Missouri Chamber was a strong supporter of this legislation because it addresses critical infrastructure needs. We applaud Gov. Mike Kehoe for signing SB 4 into law, ensuring the state has the energy capacity to power new investments and help existing businesses expand.”

Improving public safety

Gov. Kehoe also signed into law an omnibus crime package that contains a wide variety of crime reduction measures, including increased penalties for organized crime groups who steal merchandise from Missouri businesses.

The legislation makes organized retail theft a Class C felony if the value of the property taken – combined with any property damage – is between $750 and $10,000. The charge increases to a Class B felony if the value is over $10,000.

In an effort to address both workforce and public safety concerns, the Missouri Chamber backed a bill to give first responders and their children free college tuition.

SB 71, sponsored by Sen. David Gregory (R-St. Louis County) and handled by Rep. Dave Hinman (R-O’Fallon), establishes the First Responder Recruitment and Retention Act. This legislation accomplishes one of the recommendations of the Missouri Chamber’s Safer Missouri, Stronger Missouri report: to take proactive steps to stabilize and grow the first responder workforce in Missouri.

“First responders are essential to maintaining the safe, stable communities that businesses depend on,” Corches said. “We are encouraged by the steps lawmakers are taking to prioritize public safety and look forward to the day when Missouri’s crime rate no longer stands in the way of our state’s economic progress.”

Reforming Missouri’s legal climate

For the first time in several years, tort reform efforts gained some momentum in the Missouri General Assembly.

Gov. Kehoe signed SB 47 – legislation to make the legal process fairer and simpler. The legislation, sponsored by Sen. Curtis Trent (R-Springfield) and handled by Rep. Dane Diehl (R-Butler), makes several technical changes to bring Missouri’s class action rules in line with federal law.

“SB 47 helps level the playing field for Missouri businesses facing class action lawsuits and promotes a more balanced, fair legal system,” Corches said. “It’s a step forward in ensuring our legal climate supports – rather than hinders – economic growth. However, there’s still work left to do. We must modernize Missouri’s outdated statute of limitations, which continues to cause costly delays and discourage business investment in our state.”

Investing in high-tech manufacturing, workforce training

The state budget includes funding for many key business priorities, including money to onshore high-tech manufacturing industries and build and retain a skilled workforce.

Thanks to the Missouri Chamber’s advocacy efforts, the budget includes $6 million for the Credential Training Program. This competitive grant program reimburses employers who help their workers earn short-term certificates or credentials in vital areas for Missouri’s economy, such as cybersecurity, welding, construction or nursing.

The Missouri Chamber also led the push to secure $15 million to attract and expand high-tech manufacturing in the state – specifically, the production of semiconductors and active pharmaceutical ingredients, or APIs. This funding will help combat the public health and national security risk caused by an over-reliance on foreign-sourced products.

Stopping job-killing legislation

The Missouri Chamber also advocated to stop government overreach in the form of legislation that threatened to derail our state’s progress. Our efforts were critical in stopping several damaging, anti-business proposals, including bills that aimed to:

  • Increase taxes on the state’s manufacturers;
  • Restrict the use of SNAP benefits to certain foods and drinks; and
  • Impose new, extreme labeling requirements on Missouri food and beverage products.

The Missouri Chamber will continue to stand up for job creators and fight against legislation, ballot measures and constitutional amendments that threaten Missouri’s economic climate.

“We will always defend free enterprise,” Corches said. “Missouri should be a state that welcomes and supports business, not one that pushes it away. We oppose any legislation that adds to the regulatory burden or creates barriers to interstate commerce, both of which undermine our state’s competitiveness.”

YouTube video

BACK

Related Resources