What Missouri’s Proposition A Means for Employers

What Missouri’s Proposition A Means for Employers

This post is intended for informational purposes only and does not constitute legal advice. Employers should consult legal counsel to assess compliance obligations under Missouri law.

On November 5, 2024, Missouri voters approved Proposition A—a measure that introduces significant changes to employment law in our state. Now, every employer not specifically exempt must be prepared for its sweeping effects, including mandated paid sick leave and a multi-step increase in the minimum wage. These changes present unique compliance challenges for Missouri’s construction industry. Here’s what you need to know.

A Higher Minimum Wage, with More to Come

Proposition A raises Missouri’s minimum wage to $13.75 per hour beginning January 1, 2025. One year later, on January 1, 2026, the rate will increase to $15.00 per hour. After that, the law requires automatic annual adjustments based on inflation. The adjustment will align with the Consumer Price Index for Urban Wage Earners and Clerical Workers, published by the U.S. Department of Labor.

Missouri’s First-Ever Paid Sick Leave Mandate

Proposition A also ushers in the state’s first mandatory paid sick leave requirement for nearly all private employers. Starting May 1, 2025, businesses that are not exempt from the law must provide earned paid sick time to eligible employees regardless of employee count.

This requirement is not limited to full-time workers. All employees—whether part-time, temporary, or seasonal—begin accruing paid sick leave at a rate of one hour for every 30 hours worked. Exempt employees under the Fair Labor Standards Act are presumed to work 40 hours per week unless a shorter work week is established. Employers are responsible for tracking this time.

While the law allows employers to use paid time off policies in place of the new sick leave rules, those policies must meet all requirements laid out under Proposition A. That includes meeting the accrual rate, allowing time to be used for a wide range of qualifying reasons, and maintaining proper documentation.

Who’s Covered—and Who’s Not

Nearly all private employers must comply with Proposition A. However, there are some exceptions. Public employers—including government agencies, school districts, and public colleges—are exempt, as are private retail and service businesses with less than $500,000 in gross annual revenue. That said, these exceptions are narrow, and the vast majority of private employers will be subject to the law’s provisions.

Note that the law applies regardless of a business’s number of employees. There is no small business exemption based on employee count.

What Sick Leave Can Be Used For

Under Missouri law, the definition of “earned paid sick time” is broad. Employees can use this leave to care for themselves or a family member due to illness, injury, or preventive care. It also covers time off in public health emergencies—such as workplace or school closures—and allows for leave related to domestic violence, sexual assault, or stalking.

The term “family member” is defined loosely and includes spouses, domestic partners, children, parents, grandparents, grandchildren, siblings, and others for whom the employee is responsible.

Compliance Deadlines and Employer Responsibilities

To prepare for implementation, employers must provide employees written notice of the sick leave benefit by April 15, 2025. The accrual of earned paid sick time begins on May 1, 2025.

Employers can allow employees to accrue sick leave gradually or frontload the expected annual amount at the start of a designated 12-month period. While frontloading is permitted, the Missouri Department of Labor has yet to issue final guidance on how much time must be frontloaded to ensure compliance for non-exempt employees.

Employees must be allowed to carry over up to 80 hours of unused sick time into the following 12-month period. Alternatively, employers can pay out unused time at the end of the year and restart the benefit period.

Usage of the time is capped annually depending on business size:

• 15 or more employees, workers may use up to 56 hours per year.
• Fewer than 15 employees, the cap is 40 hours per year.

Employers are not required to pay out unused sick time upon an employee’s departure, whether through resignation, termination, or retirement.

Notice and Documentation Rules

Employees must make a good-faith effort to notify their employer if they need to use sick time. If the leave is foreseeable, employers may require employees to provide advance notice in good faith. Employers can also ask employees to make reasonable efforts to schedule their use of paid sick time in a manner that does not significantly disrupt operations.

Employers may also request documentation for absences lasting three or more consecutive days. However, the law strictly limits what information can be requested—documentation can only confirm that the leave was necessary and for a valid reason. Employers cannot request documentation for leave that reveals the nature of an illness, details of health needs, or specifics of domestic violence, sexual assault, or stalking, unless required by applicable law.

Recordkeeping and Enforcement

Compliance doesn’t stop at policy creation. Employers must keep records of employee hours worked and sick leave taken for at least three years and make these records available to the Missouri Department of Labor upon request.

Failure to comply can carry serious consequences. Employees may file civil lawsuits if they are denied sick leave or experience retaliation for using it. In addition to being liable for the cost of the denied leave, employers could also face liquidated damages equal to the value of the leave, plus attorneys’ fees, if the employee prevails. Willful violations of the law are considered a Class C misdemeanor.

Navigating Uncertainty and Next Steps

While Proposition A is now law, litigation is ongoing, and key regulatory guidance is still pending. Employers should act in good faith to prepare now, even if some implementation questions remain unanswered.

At ABC Heart of America, we are closely monitoring updates from the Missouri Department of Labor and Industrial Relations, the Missouri General Assembly, and Missouri’s Supreme Court. We will keep you and your team informed as new information becomes available. For now, employers should review their current paid leave policies, consult with legal counsel, and take proactive steps to comply with the minimum wage and paid sick leave mandates ahead of the 2025 deadlines.

Thank you to Polsinelli for their insights and information on this matter.

Linked below is the FAQ section of the Missouri Department of Labor and Industrial relations provided regarding Prop A:

https://labor.mo.gov/dls/proposition-a-paid-sick-time-benefits-faqs

Poster – Earned Paid Sick Time

https://labor.mo.gov/media/pdf/earned-paid-sick-time-ls-121

Notice – Earned Paid Sick Time

https://labor.mo.gov/media/pdf/earned-paid-sick-time-notice-ls-122