Prop A Resets Floor on Minimum Wage

PUBLISHED JANUARY 2025

The minimum wage in Missouri increased to $13.75 per hour on Jan. 1 and will increase by $1.25 per hour more in 2026, when it will be $15 per hour. The minimum wage will be adjusted based on changes in the Consumer Price Index each January beginning in 2027. (The minimum wage in Kansas is not scheduled to increase in 2025, and will remain at $7.25 per hour.)

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

Wage Impacts

While the main provision is wage-related, much of the new law focuses on sick-leave requirements for employers, depending on how many employees they have:

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.

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 front-load 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.

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.)

Defining ‘Family’

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. 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.

Business Considerations

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.

Business owners should be aware that some aspects of the law may be changing. A coalition of business advocacy groups has filed suit, saying the minimum-wage changes and sick-leave provisions violate constitutional rules on ballot initiatives.

The filing with the Missouri Supreme Court was made by Associated Industries of Missouri, the Missouri Chamber of Commerce and Industry, the Missouri Grocers Association, the Missouri Restaurant Association, the National Federation of Independent Business, along with several individuals. 

Legislatively, 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.