Proposition A Passes, Will Raise Missouri Minimum Wage and Mandate Paid Sick Leave

Most Missouri employers will soon be required to pay workers a minimum wage of $13.75 per hour and provide paid sick leave.

Yesterday, in a referendum on Missouri wage laws, voters resoundingly approved Proposition A, which amends Missouri statutory law to increase the minimum wage to $13.75 per hour, effective January 1, 2025, with additional increases in the years that follow. The proposition also mandates that employers provide paid sick leave, effective May 1, 2025. The full text of the amended and new statutory provisions can be found here. Below is a summary of the key provisions.

Minimum Wage

Beginning January 1, 2025, most Missouri employers will be required to pay their workers minimum wage of $13.75 per hour, with the wage increasing to $15.00 per hour effective January 1, 2026. Starting on January 1 each subsequent year, the minimum will be adjusted based on changes to the cost of living, as reflected in the Consumer Price Index for Urban Wage Earners and Clerical Works (as published by the U.S. Department of Labor). As is already the case under current law, if the federal minimum wage exceeds Missouri’s minimum wage at any time, Missouri’s minimum wage will automatically increase to match the federal rate.

Paid Sick Leave

Beginning May 1, 2025, most Missouri employees will begin accruing paid sick leave at a rate of one hour for every 30 hours worked. Employers will need to prepare revised or new policies to address this benefit. While employers should review the entire statute carefully and consult with legal counsel, some notable features include: 

1. No Accrual Maximum. There is no maximum amount of sick leave an employee can accrue. However, employers with 15 or more employees may limit an employee’s use of paid sick leave to 56 hours per year, while employers with fewer than 15 employees may impose a 40-hour per year limit.
2. Carryover Requirements. Employers must allow employees to carry over at least 80 hours of unused sick leave from year to year. For example, if an employee works 2,010 hours in a year, they will have accrued 67 hours of sick leave (2,010 ÷ 30 = 67 hours). If the employee uses none of those hours, the full 67 hours would carry over to the next year. In the following year, if the employee accrues another 67 hours but uses none, the employer can implement a policy limiting carryover to the next year to 80 hours.
3. Frontloading. Employers are permitted to “frontload” paid sick leave at the beginning of the year, meaning they provide the full allotment of leave upfront, rather than accruing it over time. However, if frontloading is chosen, any unused sick leave must be paid out at the end of the year, and employees will not be allowed to carry over unused leave.
4. Use of Leave. Paid sick leave can be used for a variety of reasons, including: the employee’s own medical and mental health care, caring for a family member who needs care or treatment, in instances of public health emergencies and certain types of domestic violence leave.
5. Existing Paid Time Off (PTO) Policies. If an employer’s existing PTO policy provides sufficient PTO to meet the minimum requirements of the new law, that policy can continue in effect. The employer does not need to go beyond what it is already doing. However, the existing PTO policy must meet the accrual rate and permitted use requirements of the new law.
6. Causes of Action. The law provides employees with causes of action in the event an employer retaliates against them for exercising rights under the law, or if an employer fails to provide the paid sick leave time the employee is entitled to. A court may impose penalties against the employer, including double the amount of unpaid sick leave and attorney’s fees for the employee’s legal costs.

Exceptions

There are several exceptions to the minimum wage and the new paid sick leave laws, meaning certain types of employees and employers are not subject to these provisions. For example, the laws generally do not apply to the following: volunteers to non-profits, seasonal employees at overnight and day camps for children and youth (employed less than four months per year), individuals employed at a private residence on an occasional basis for six hours or less, babysitters engaged on a casual basis, and employees of retail or service businesses with annual revenues under $500,000.

Conclusion

Employers should start preparing to comply with the new minimum wage requirements, which begin January 1, 2025, and start updating their PTO and sick leave policies to ensure compliance with Missouri law by no later than May 1, 2025. If you have any questions specific to your organization, please contact your Armstrong Teasdale lawyer or one of the authors listed below.