Proposition A Passes, Will Raise Missouri Minimum Wage And Mandate Paid Sick Leave – Employee Rights/ Labour Relations – Employment and HR
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:
- 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. - 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. - 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. - 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. - 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. - 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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
