YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
Missouri Senate Republicans voted Wednesday to repeal portions of Proposition A, which was approved by voters in November and designed to allow employees to earn a higher minimum wage and paid sick leave.
Members of the Senate voted 22-11 to pass House Bill 567, modifying provisions related to paid sick leave and employee compensation. Sen. Lincoln Hough, R-Springfield, was the lone Republican who voted with all 10 Democrats in the Senate against the bill.
Hough didn’t return a message seeking comment by deadline.
Proposition A, which passed with roughly 57.6% of the vote in November, mandates all employees be given one hour of paid sick leave for every 30 hours worked, with enforcement and oversight by the Missouri Department of Labor and Industrial Relations. Governmental entities, political subdivisions, school districts, educational institutions and those who work at businesses with less than $500,000 in annual revenue are among exemptions, according to the secretary of state’s office.
The paid sick leave portion of the law went into effect on May 1. Proposition A also raised the state’s minimum wage to $13.75 per hour as of Jan. 1, up from $12.30 per hour. It then increases the minimum wage to $15 per hour in 2026, with future increases tied to inflation.
HB 567 removes the paid sick leave requirement from Proposition A but does not affect the minimum wage increase. However, it does repeal the yearly cost-of-living increases. The bill was passed by the House of Representatives and had been stuck in the Senate for weeks.
Senate Republicans forced a vote on the bill with a rarely used procedural maneuver known as “calling the previous question,” or PQ. Two-thirds of the Senate must vote to approve the PQ, which forces a vote on the legislation at hand. The maneuver also was used yesterday prior to the HB 567 vote to overturn the abortion rights amendment passed by voters in November. It will put abortion access back on the Missouri ballot at an undetermined date.
Because Prop A changed state law and not the constitution, unlike the abortion rights amendment, the legislature can modify or overturn it without voter approval, according to the secretary of state’s office.
Before Wednesday, the previous question rule was last implemented in 2020, according to media reports.
Shortly after HB 567 was passed, House Minority Leader Ashley Aune, D-Kansas City, released a statement condemning the Senate’s decisions regarding Proposition A and abortion.
“Today, Senate Republicans said they don’t give a damn what voters think by moving to repeal both,” Aune said in the statement. “Missourians will not accept their fundamental rights being stripped away and their decisions ignored. The majority party has ignited a political firestorm that will scorch them.”
The Senate vote on HB 567 follows an April 29 decision by the Missouri Supreme Court, which ruled that election results are valid for Proposition A, according to past Springfield Business Journal reporting. It ended a lawsuit filed in December challenging the constitutionality of the minimum wage and required paid sick leave law. The Missouri Chamber of Commerce and Industry and the Missouri Restaurant Association were among plaintiffs in the case.
Springfield Area Chamber of Commerce President and CEO Matt Morrow told SBJ after the Supreme Court ruling that the chamber was “committed to strongly advocating for a swift state legislative fix to both alleviate concerns and clarify the many questions from businesses that, unfortunately, remain unanswered with the current statutory language.”
Chamber officials were unavailable for comment this morning prior to deadline.
HB 567 is now headed to the desk of Gov. Mike Kehoe, who will need to sign the legislation for it to become law. If signed, it will be effective Aug. 28. Until then, businesses must still comply with the paid sick leave law that went into effect May 1, according to Karen Shannon, vice president of business consulting at Ollis/Akers/Arney.
“Nothing has changed as of today,” she said, noting the law changes are dependent on Kehoe signing the bill.
Shannon said Ollis/Akers/Arney has worked with clients on sick leave policies since voters approved Proposition A in November. Most of them had policies that met or exceeded what was put in place by the voter-approved law, she said.
“For the ones that did not have as rich policies for paid sick time, some may leave elements in place,” she said, noting Proposition A’s paid sick leave component had a roundabout benefit to make some employers consider starting or improving such policies. “They might see some benefits of having some of that in place to attract and retain talent.”
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I am a Republican and don't approve or voted for everything that passed this year, but in no way should the legislature be allowed to change what the voters have passed. After all it is the sole duty of legislators to uphold the will of the people. This is why they were elected, and also can be not elected by we the people.
Once again the Missouri legislature has thumbed its nose at voters, claiming they're not smart enough to understand what they're voting on.
So that must mean the citizens aren't smart enough to choose the right politicians.
Regarding Proposition A and the significant impact it would have on small businesses, particularly in relation to state minimum wage increases, the 2027 market wage index, and the mandated paid sick leave (PSL) provisions.
My deep concern regarding Proposition A is the detrimental impact it will have on small business, that depend on an active, on-site workforce. The proposed increases in Missouri’s minimum wage, the 2027 consumer index wage match, and the introduction of mandatory paid sick leave (PSL) present significant challenges that threaten the stability and economic well-being of small business.
Raising Missouri’s minimum wage to levels disproportionate to our state’s economy would place Missouri among the group of states with the highest minimum wage in the nation. Unlike those states, Missouri’s economic infrastructure is not equipped to absorb such a drastic increase. Consequently, businesses will be forced to raise the costs of goods and services, cut jobs, add technology for human replacement or, in some cases, close their doors altogether. Furthermore, the wage gap between skilled and unskilled labor will shrink, making it increasingly difficult to attract and retain a qualified workforce in industries that rely on specialized skills.
The implementation of PSL will further strain small businesses, particularly those with 15 but less than 50 employees, where maintaining efficient operations is already challenging. For companies with 50 or more employees, PSL will compound the existing difficulties associated with the Family and Medical Leave Act (FMLA), which is already prone to misuse. Managing these additional financial and administrative burdens will place significant strain on operational efficiency and long-term sustainability.
From my discussions with fellow business owners and workers, it is evident that many Missourians were not fully aware of the far-reaching consequences of this proposition. The unintended effects on our state’s workforce, economy, and business community are alarming.
Many companies operating on thin human capital rely on a dedicated and skilled workforce to keep projects running efficiently. If enacted, Proposition A will impose unnecessary burdens on small businesses alike, leading to workforce shortages, reduced productivity, and increased operational costs. These changes threaten not only small business and the ability to remain competitive but also the livelihoods of their employees and their families.
Small businesses are the backbone of Missouri’s economy, and measures like Proposition A create barriers to growth and success rather than opportunities. I have urged Missouri leadership to consider the substantial negative impact this will have on hardworking businesses and to take action to oppose Proposition A. Protecting local businesses, workers, and the communities we serve must be a priority.