Missouri’s Proposition A has been Repealed

By Laura Pokrzywa, Human Resources Consultant

In November of 2024, Missouri voters approved Proposition A. That ballot measure included two requirements: (1) incremental increases to minimum wage; and (2) paid sick leave for employees of most private employers. Prop A became effective on May 1, 2025, despite legal challenges. However, within weeks of that effective date, the state’s legislature passed a bill to amend the minimum wage increases and to repeal the paid sick leave requirements. On July 10, Governor Kehoe signed the new bill, and the repeal will become effective on August 28, 2025.

What Happens Now?

Regarding Minimum Wage: The current minimum wage of $13.75 and the $15.00 rate for 2026 will remain intact. However, the inflation-based annual adjustments to the minimum wage that were set to begin in 2027 have been repealed.

Regarding Paid Sick Leave: Private employers must continue to provide paid sick leave in accordance with the requirements of Proposition A through August 27, 2025. That means employees should continue to accrue at least one hour of paid sick leave for every 30 hours worked and must be permitted to use that time for the reasons set forth in Proposition A.

What Happens on August 28?

As of August 28, 2025, employers may continue to offer employees earned paid sick time if they wish, but they are no longer required to do so. Employers who created new policies, or modified existing policies to comply with Proposition A will have to decide if they want to voluntarily keep the new policies in place, modify those new policies, or revoke them entirely. If changes are to be made, they should decide on what date those changes will take effect (i.e., on August 28 or on another date following August 28).

Whatever your organization decides, consider these steps:

1. Communicate your Plan to Employees. If you will maintain your current policy despite the repeal, let them know. If you plan to make revisions to your current policy, be sure to let them know what will happen to their unused balances once your current policy has been revised or replaced. You should also provide employees with the policy you will be using going forward and the effective date for that policy.
2. Update Payroll and Timekeeping Systems. Be sure your system continues to track accruals and use at least through August 28. Update the system accordingly if any changes are to be made after that date.
3. Talk with Legal Counsel or a Trusted HR Professional. Reducing or revising your employee’s paid time off benefits can have a negative impact on employee morale and damage trust. In addition, if any of your employees work under a collective bargaining agreement, changes may also violate the terms of that agreement. If you decide to reduce paid sick time benefits, we recommend you seek legal counsel or talk with an experienced human resource professional to ensure you have carefully considered all your options.

Employers who would like to discuss options and best practices in light of this repeal can contact our HR team by email at hrhelpline@keystoneinsgrp.com or by calling 855-873-0374. We will be happy to help!

Disclaimer: This information is for informational purposes only and not for the purpose of providing legal advice. This article does not create an attorney-client relationship between Keystone’s Risk Management Division and the reader.