For information purposes only. Employers should consider seeking the assistance of experienced employment law attorneys before implementing policy changes.

Governor Mike Kehoe signed into law H.B. 567 which, effective on and after August 28, 2025, reverses Missouri's paid sick leave requirement. In addition, effective in 2027, the law eliminates annual cost of living increases to the minimum wage. Both repealed provisions were enacted under Proposition A.

Background

Proposition A, included on the statewide November 5, 2024 election ballot and approved by 58% of voters, made changes to the state's wage-hour laws as follows:

• Increased the minimum wage from $12.30 to $13.75 per hour effective January 1, 2025, and to $15.00 per hour effective January 1, 2026.
• Adjusted the minimum wage based on changes in the Consumer Price Index each January starting in 2027.
• Required all private-sector employers to provide one hour of paid sick leave for every 30 hours worked. (Tax Alert 2024-1951.)

An unsuccessful constitutional challenge (SC100876) filed with the Supreme Court of Missouri in December 2024 delayed implementation of Proposition A to May 1, 2025. Also in December 2024, H.B. 567 was introduced to repeal the paid sick leave requirement and the annual cost of living increases to the minimum wage. H.B. 567 was signed into law on July 10, 2025.

The minimum wage increases to $13.75 for 2025, and $15.00 for 2026 and later years remain unchanged.

Ernst & Young LLP insights

Before ending paid sick leave for Missouri employees, employers should consult with counsel to determine if employee handbooks/policy statements have reserved the right to amend or modify their paid sick leave benefits.

More information concerning Missouri's paid sick leave requirement through August 27, 2025, is available here.