November 27, 2024 4 min read

Proposition A: What Employers Need to Know

In November, Missouri voters chose to support Proposition A, a ballot measure that will increase Missouri’s minimum wage to $15 an hour by 2026. Additionally, Proposition A requires employers to provide paid sick leave to employees.

Over the next several weeks, the Missouri Chamber of Commerce and Industry will provide various resources for employers. In the meantime, here are the answers to some frequently asked questions.

What does Proposition A mean for minimum wage in Missouri?

The minimum wage will increase to $13.75 per hour on January 1, 2025. The minimum wage will continue increasing $1.25 per hour each year until 2026, when it will be $15.00 per hour.

The minimum wage will be adjusted based on changes in the Consumer Price Index each January beginning in 2027.

Who is exempt?

The law exempts governmental entities, political subdivisions, school districts and education institutions from the minimum wage increase.

What requirements do employers have regarding paid sick leave?

Proposition A requires all employers to provide one hour of paid sick leave for every 30 hours worked.

For businesses with more than 15 employees, employees may use up to 56 hours of paid sick leave per year. For businesses with less than 15 employees, employees may use up to 40 hours per year.

Employees will start accruing paid sick time on May 1, 2025, and employers must provide written notice of the paid sick time by April 15, 2025.

Can employees carry over paid sick leave from year to year?

Employers must allow employees to carry over up to 80 hours of earned, but unused, sick time from year to year.

Employers are allowed to frontload sick leave, or provide all paid sick time that an employee is expected to accrue over the course of the year at the beginning of the year.

What can employees use sick leave for?

Employees may use sick leave to:

  • Care for their mental or physical health, including preventative care;
  • Care for a family member’s mental or physical health;
  • Stay home when their business is closed due to a public health emergency;
  • Care for a child whose school or daycare has closed due to public health emergency;
  • Address domestic violence, sexual assault or stalking (in certain circumstances.)

Who is considered a family member?

The law’s definition of family member is much broader than provided under the federal Family and Medical Leave Act (FMLA).

Under Proposition A, a family member can include:

  • A child, stepchild, child of a domestic partner, or child whom the employee performs parental duties for;
  • A parent, stepparent, legal guardian, or individual who served as a parent to the employee or their spouse;
  • A spouse, domestic partner, or individual with whom the employee is in a romantic relationship;
  • A grandparent, grandchild or sibling of the employee, employee’s spouse or domestic partner; or
  • A person for whom the employee is responsible for providing health or safety-related care.

What are the penalties for businesses that do not comply?

Proposition A creates additional liability for employers, as it prohibits retaliation or discrimination against employees who use their earned sick time. The prohibition against retaliation also makes it more difficult for employers to determine whether an employee is misusing sick leave.

The liability provisions could make employers responsible for the employee’s legal fees and cost of the leave that was denied. Even in cases where an employee has no standing, employers will be required to devote time and resources to defend themselves.

Can the Missouri General Assembly overturn or modify Proposition A?

Yes. Because Proposition A changed state law but not the state constitution, lawmakers could choose to overturn or change portions of it without voter approval.

What is the Missouri Chamber doing to stop Proposition A from taking effect?

Associated Industries of Missouri, the Missouri Chamber of Commerce and Industry, the Missouri Forest Products Association, the Missouri Grocers Association, the Missouri Restaurant Association, Missouri Retailers Association and the National Federation of Independent Business (NFIB) are exploring all available options, including possible legal action, to ensure unemployment rates and cost of living are not adversely impacted by this proposition.

The Missouri Constitution requires ballot initiatives to contain a single subject, expressed clearly in the title of the ballot measure. Proposition A contains at least two clear subjects – minimum wage increase and mandatory paid sick leave.

If the coalition decides not to pursue a legal challenge or a legal challenge is unsuccessful, the business community will seek legislative changes to Proposition A.

Where can I read the full text?

The full text of Proposition A can be found on the Missouri Secretary of State’s website.

The information in this post does not constitute legal advice. Please consult legal counsel for specific application of policies.


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