On November 5, 2024, Missouri voters passed Proposition A, a measure that raises the state minimum wage and mandates paid sick leave for many businesses. Here’s a breakdown of the legislation and how businesses should prepare.
Key Points of Proposition A
- Wage Increase: The minimum wage will increase from $12 to $13.75 per hour on January 1, 2025, and further to $15 per hour on January 1, 2026.
- Annual Adjustments: Beginning January 2027, wages will adjust annually based on the Consumer Price Index (CPI).
- Paid Sick Leave: Beginning May 1, 2025, employers must provide one hour of paid sick leave for every 30 hours worked, with oversight by the Department of Labor and Industrial Relations.
- Exemptions: Governmental entities, political subdivisions, school districts, and educational institutions are exempt from these requirements.
Full legislation details can be reviewed here.
HR Compliance & Strategy for Businesses
It’s important to be proactive to help your business stay compliant and financially ready. Here’s how your business can approach these legislative updates:
- Adjust Payroll Budgeting: Project labor cost increases through 2026, factoring in CPI adjustments starting in 2027.
- Revise Employee Handbooks: Integrate compliant policies for paid sick leave.
- Training and Implementation: Equip HR teams with tools and knowledge for seamless policy integration and management.
How KPM Can Support You
Our Human Capital Solutions practice specializes in HR strategy and compliance. We’re here to help you adapt to legislative changes with tailored solutions that balance employee well-being and business efficiency. Contact us with questions.