Proposition A — Amendments to the Missouri Labor and Industrial Relations*
*Access a copy of the Proposition A full bill text here.
*Access a searchable PDF, that includes the language of Proposition A, here.
On November 5, 2024, Missouri voters approved an amendment to RSMo § 290.502, increasing the state minimum wage in 2025 and 2026. In addition, voters approved earned paid leave that employees can use for their own or their “family member’s” illness(es), preventative care, and/or to address victims’ needs resulting from domestic violence, stalking, and/or sexual assault (collectively referred to as “Paid Leave” below). Since its passage, after reading overviews of the Amendment, many of our clients still had questions about how best to implement the requirements considering their workforce and current leave policies. Most wondered if their current PTO policy would suffice as written. Below, members of Husch Blackwell’s Labor & Employment team have answered these questions.
How does Proposition A change Missouri’s minimum wage?
Starting January 1, 2025, the minimum wage in Missouri will increase from $12.30 per hour to $13.75, per hour. Effective January 1, 2026, the minimum wage will further increase to $15.00 per hour. Beginning January 1, 2027 (and each subsequent year on January 1) Missouri’s minimum wage will be modified according to cost-of-living changes, as indicated by the Consumer Price Index for Urban Wage Earners and Clerical Workers, published by the U.S. Department of Labor. Consequently, the state minimum wage could increase or decrease, depending on the economic climate throughout the country, though it will not fall below the federal minimum wage at any point. Employers should keep in mind, however, that they still need to comply with any local minimum wage requirements that establish a higher minimum wage than required under federal and/or state law.
What are the Paid Leave Requirements Under Proposition A?
Which employees are entitled to Paid Leave under Proposition A?
Though Proposition A expressly contemplates some exceptions, virtually all Missouri employees of private employers are entitled to Paid Leave under this law. More specifically, employees of private employers with 15 or more employees will accrue one hour of Paid Leave for every 30 hours worked, with a usage cap of 56 hours per year (unless the employer opts for a higher limit). For employees of private employers with 14 or fewer employees, the accrual rate will be the same, but the usage cap is set at 40 hours annually (again, subject to an employer’s choice to implement a higher limit). For the purposes of accrual, salaried FLSA-exempt employees are assumed to work 40 hours per week, unless their actual workweek is fewer than 40 hours. If an employee works 40 hours per week, 50 weeks out of the year (assuming 2 weeks of vacation), they will accrue approximately 68 hours of Paid Leave in a 12-month period. Though there is no formal accrual cap, this has little practical effect for unused Paid Leave in excess of 80 hours, in light of the use and carryover caps imposed. Employers should still, however, maintain accurate accounting of Paid Leave hours employees accrue in excess of the usage and carryover caps.
Proposition A defines “employee” as “any individual employed in [Missouri] by an employer,” but also exempts specific limited categories of employees from coverage, though we have not outlined these here. See RSMo § 290.600.5 for a complete list of employee exemptions from Proposition A’s paid leave requirements.
How can employees use Paid Leave under Proposition A?
Employees must be permitted to use Paid Leave as soon as it is accrued, regardless of tenure. Employees may use Paid Leave in one-hour increments, or another increment of time the employer uses to account for absences or other time off, whichever is the smaller increment. Employees will begin to accrue Paid Leave beginning on the later of May 1, 2025, or upon commencement of their employment.
Paid Leave may be used by an employee for their own or their family member’s mental or physical illness or to obtain medical care (including preventative care). The Paid Leave can also be used to address issues related to domestic violence, sexual assault, and/or stalking (as further defined under Missouri law) and/or for absences due to public health emergencies that result in business or school closures.
Proposition A defines “family member” to include the employee’s child, parent, sibling, grandchild, grandparent, spouse or domestic partner, or a person(s) for whom the employee is responsible for providing or arranging care related to health or domestic violence, sexual assault, and/or stalking. Notably, Proposition A permits employees to use Paid Leave to care for “an individual with whom the employee is in a continuing social relationship of a romantic or intimate nature,” which is an unusual definition of “family member” under legislation of this type and scope.
Should an employer change its PTO policy to comply with Proposition A at the beginning of 2025?
Because Proposition A calls for the accrual and use of Paid Leave to begin on May 1, 2025, employers should be aware that leave offered to, and taken by, an employee before that date will not fulfill Proposition A’s stated requirements to have an employee start accruing Paid Leave on May 1, 2025. For instance, if an employer provides an employee a PTO bank to use for the year beginning January 1, 2025, and the employee uses all of that time before May 1, 2025, the employee is still entitled to accrue and use Paid Leave for the remainder of the year. For that reason, employers who plan to provide a general PTO bank to their employees may consider reserving some of the PTO bank for use between May 1, 2025, and December 31, 2025, to ensure compliance with Proposition A’s accrual and usage specifications during 2025’s transition period. Thereafter, employers can frontload general PTO, if desired, without concern about when an employee uses their leave during the calendar year.
If an employer already has a general PTO policy that meets Proposition A’s accrual and use requirements, is that enough?
In many cases, no. Proposition A states that “[a]ny employer with a paid leave policy, such as a paid time off policy, who makes available an amount of paid leave sufficient to meet the accrual requirements of this section that may be used for the same purposes and under the same conditions as earned paid sick time under [this law] is not required to provide additional paid sick time under this section.” See RSMo § 290.603.5 (2024). Therefore, Proposition A does not mandate that employers add additional paid time off to their current policies or have a separate bank of time if the employer’s current policy provides the same (or more) number of hours off that an employee could accrue under Proposition A. However, employers must still ensure their policy allows employees to utilize their PTO under all the conditions set forth in Proposition A, like those related to payout, carryover, notice, and increments of use of paid leave. To ensure compliance, therefore, employers should review their PTO policy to ensure that it aligns with all requirements of Proposition A.
What happens to employees’ unused Paid Leave at the end of the year or the end employment?
Employees must be allowed to carryover up to 80 hours of accrued, unused Paid Leave from one year to the next. Alternatively, employers can choose to pay-out to employees the equivalent value of any accrued, unused Paid Leave at the end of the year.[1] If an employer chooses to pay-out accrued unused Paid Leave at the end of the year, the employer must frontload the full year’s worth of Paid Leave at the start of the following year and make such leave available for an employee’s immediate use. It is unclear how much Paid Leave an employer must frontload for employees with fluctuating work schedules. For employers that have a general PTO policy that provides employees with more leave than provided under Proposition A, carryover is likely to be more economically beneficial than a payout. Nothing in the law requires employers to pay employees for accrued, unused Paid Leave upon separation of employment.
Does Proposition A supersede an existing collective bargaining agreement?
No, if the collective bargaining agreement was in effect on November 5, 2024, and has not been renewed or otherwise changed. For employees under a valid collective bargaining agreement as of November 5, 2024, Proposition A’s Paid Leave provisions will not apply until the agreement’s expiration date. However, these provisions will apply if the agreement is renewed, extended, amended, or modified in any way after that date. Proposition A does not, however, limit employees’ rights to collectively bargain for earned Paid Leave or work conditions that exceed the minimum standards outlined in the proposition.
Do employers need to inform employees about Proposition A’s Paid Leave requirements or post any new notices?
Yes. Employers are required to provide employees with written notice of their rights under Proposition A on April 15, 2025, or within 14 days following the employee’s commencement of employment, whichever occurs later. Proposition A specifies items that must be included in the written notice to employees. See RSMo § 290.612. In addition, beginning April 15, 2025, in each establishment where covered employees work, employers must conspicuously display a poster that outlines the same information contained in the notice and meets the formatting requirements specified under Proposition A.
Do employers need to keep records of employees’ Paid Leave time?
Yes. Employers must create, and retain for at least three years, records of hours worked, and Paid Leave taken, by each employee. Proposition A does not make clear whether the three-year period begins on the date Paid Leave is accrued or taken, or the date of the employee’s separation from employment. We recommend maintaining relevant documentation for at least three years after the employee’s separation of employment to ensure compliance.
Can employers require employees to provide advance notice of their need for Paid Leave?
In some cases, yes. When an employee’s need to use earned Paid Leave is foreseeable, the employee must “make a reasonable effort to schedule the use of earned paid [leave] in a manner that does not unduly disrupt the operations of the employer.” Under such circumstances, employers may require employees to “make a good faith effort to provide notice of the need [for paid leave] in advance.” If the need is not foreseeable, however, then an employer may require that notice be given “as soon as practicable.” In addition, employers that require employees to provide notice for leave that is not foreseeable must have a written policy that sets forth the procedures for an employee to provide such notice.
Can employers require employees to provide proof of their need for Paid Leave?
In some cases, yes. If the employee has used earned Paid Leave for three or more consecutive workdays, then the employer may require “reasonable documentation” that the leave time was used for a covered purpose under Proposition A. For leave related to illness, documentation from a healthcare professional, confirming the need for Paid Leave, is considered reasonable. For leave taken for the purposes of domestic violence, sexual assault, and/or stalking, documentation can come from a healthcare provider, police report, court document, or victim service provider, as appropriate, or as a written statement from the employee confirming the need for Paid Leave. Under no circumstances, however, unless otherwise required by applicable law, can employers request that documentation of the need for Paid Leave explain “the nature of the illness, details of the underlying health needs, or the details of the domestic violence, sexual assault, or stalking.” Proposition A makes clear that employers must maintain confidentiality of any employee health or safety information, disclosing it only upon the employee’s express written permission, treating it as confidential medical information, and maintaining it in a file separate from the employee’s personnel file. For employers subject to the federal Family Medical Leave Act there will be overlap and relevant employers will need to determine how this Paid Leave will be accounted for in their applicable FMLA processes.
Does Proposition A impose consequences on employers that fail to comply with the Paid Leave requirements?
Yes.Proposition A prohibits interference with, and/or discrimination or retaliation based on, an employee’s exercise of rights under Proposition A, and imposes criminal penalties for willful violations. It likewise authorizes employees to pursue a private civil action (subject to a three-year statute of limitations) against their employers for alleged violations of such rights. Remediesavailable to a prevailing plaintiff under Proposition A include: injunction; the full amount of any unpaid earned Paid Leave plus actual damages resulting from the violation; liquidated damages of twice the amount of earned Paid Leave not paid to the employee; and costs and reasonable attorneys’ fees.
Proposition A empowers the Department to establish rules for enforcement and empowers municipalities to adopt local ordinances consistent with state law. Practically, this means that Missouri municipalities can create their own Paid Leave laws that either reiterate the requirements under Proposition A, or impose requirements more stringent than those under Proposition A. Where an employer is subject to the laws of a Missouri municipality that elects to do so, any violation of Proposition A would double as a violation under the respective municipal law. Employers should, therefore, remain informed about similar changes to the law of Missouri municipalities in which they operate.
More questions?
We anticipate Department-sanctioned guidance to be released in advance of the May 1, 2025, effective date and hope that such guidance will address the above-noted statutory ambiguities. Unfortunately, that may not come before many employers start their PTO year. We will update our blog as we receive more questions from our clients, or receive guidance from the State. However, if you have additional questions regarding notice, policy revisions, or implementation, please contact a member of Husch Blackwell’s Labor & Employment team.
[1] Paid Leave hours paid out must be compensated at the “same hourly rate” that the employee is otherwise compensated. Specifics for calculating such “same hourly rate” can be found in RSMo § 290.600.11.