A significant shift is coming for employers and workers in Missouri. As of July 10, 2025, Governor Mike Kehoe signed legislation that alters key provisions of Proposition A, including the removal of the state’s paid sick leave requirement. Businesses operating under Missouri law will want to take note and begin preparing now.

What’s Changing with Paid Sick Leave?

Under current state law, employees accrue one hour of paid sick leave for every 30 hours worked. That rule, however, is now set to expire.

Effective August 28, 2025, Missouri employers will no longer be legally required to offer paid sick leave.

Until then, existing leave requirements remain in place, and businesses must stay compliant. After the repeal takes effect, employers will have the option to maintain, revise, or eliminate their leave policies at their own discretion.

This change gives companies more flexibility but also places responsibility on them to clearly communicate any policy updates to their teams. While the legal mandate may be going away, organizations should consider the broader implications for employee satisfaction and public perception.

Minimum Wage: Scheduled Increases Remain (For Now)

Although the sick leave rules are changing, Missouri’s scheduled minimum wage increases will still move forward — but with one important caveat.

• $13.75/hour – effective January 1, 2025.
• $15.00/hour – effective January 1, 2026.
• After 2026, the automatic annual increases tied to inflation will no longer apply.

 
This marks a departure from the predictable wage escalations that businesses have been able to plan around for several years. While it may ease budgeting pressure for some employers, it also removes a built-in cost-of-living adjustment that many workers have come to expect.

What Should Employers Do Now?

To stay ahead of these upcoming changes, here are a few recommended steps:

• Review and revise your leave policies to prepare for the repeal and determine whether you’ll continue offering paid time off voluntarily.
• Update payroll and HR systems to accommodate the new wage rate in 2026.
• Talk with your employees early and often to set expectations and answer questions about what’s changing — and why.
• Consult with HR or legal professionals if you’re unsure how the updates apply to your organization or industry.

 
While some employers may welcome the reduced compliance burden, these changes can also create uncertainty for workers. As with any shift in labor laws, communication and transparency will be key. Forward-thinking businesses may choose to keep sick leave policies in place as part of a broader strategy to attract and retain talent — even if not legally required to do so.

Whether you operate a small business or a large organization, now is the time to revisit your internal policies and make sure your team is informed and prepared. Contact our team of HR and payroll advisors for assistance.