Proposition A: Minimum Wage and Paid Sick Time

On November 5, 2024, Missouri voters will be asked to consider Proposition A, a petition initiated state statute that would increase the state’s minimum wage and establish paid sick leave requirements for businesses. If passed, the measure would have wide-reaching impacts on both workers and businesses in Missouri.

About this series…

This is Article #7 in a series covering the NINE constitutional amendments and propositions that will be included on our November ballot. These articles are published throughout October and are designed to help explain each ballot measure (beyond the short language we normally see). I will NOT be offering opinions on candidates for office – you're on your own for that ;-)

My website and email list present the "newest" articles first, so this series will likely appear to you in reverse order. If you want to start from the beginning – start with Article #1 and follow the links to read the articles in order.

Proposition A: Minimum Wage and Earned Paid Sick Time

On November 5, 2024, Missouri voters will be asked to consider Proposition A, a petition initiated state statute that would increase the state’s minimum wage and establish paid sick leave requirements for businesses. If passed, the measure would have wide-reaching impacts on both workers and businesses in Missouri.

What Would Proposition A Do?

If passed, Proposition A would raise the Missouri minimum wage to $13.75 per hour in 2025, and then increase it to $15.00 per hour in 2025, with CPI based inflation increases after that. The measure would also require businesses to provide one hour of paid sick leave for every 30 hours worked. Smaller employers (with 15 or fewer employees) must offer five days annually, while larger employers must offer seven days.

Official Ballot Language

Do you want to amend Missouri law to:

  • Increase the minimum wage to $13.75 per hour starting January 1, 2025, and $15 per hour starting January 1, 2026;
  • Adjust minimum wage based on the Consumer Price Index each January beginning in 2027;
  • Require employers to provide one hour of paid sick leave for every thirty hours worked;
  • Allow the Department of Labor and Industrial Relations to provide oversight and enforcement; and
  • Exempt governmental entities, political subdivisions, school districts, and educational institutions?

State governmental entities estimate one-time costs ranging from $0 to $53,000, and ongoing costs ranging from $0 to at least $256,000 per year by 2027. State and local government tax revenue could change by an unknown annual amount depending on business decisions.

Current Minimum Wage in Missouri

Missouri’s minimum wage system was reshaped by the passage of Proposition B in 2018, which began raising the hourly wage from $7.85. The wage steadily increased each year until reaching $12.00 by 2023. Starting in 2024, the minimum wage, now at $12.30 per hour, is adjusted annually based on the Consumer Price Index (CPI) to account for inflation.

Paid Sick Leave Requirement

Proposition A would require all employers in Missouri to provide earned paid sick leave to employees based on hours worked. Specifically, employees would earn one hour of paid sick leave for every 30 hours worked, with a different threshold for smaller and larger employers. Businesses with 15 or more employees would be required to offer a minimum of seven days of paid sick leave per year, while those with 15 or fewer employees would need to provide five days annually.

This paid leave can be used for various reasons, such as recovering from illness or injury, attending medical appointments, caring for a sick family member, or dealing with the aftermath of domestic violence or sexual assault. Additionally, employees could begin accruing sick leave upon the start of their employment, and unused sick time could carry over to the following year, up to a maximum of 80 hours.

Supporters of Proposition A argue that the introduction of paid sick leave would benefit public health and enhance workplace safety. They emphasize that many workers, particularly those in low-wage jobs, currently do not have access to paid time off when they are ill, forcing them to choose between their health and their paycheck. Missourians for Healthy Families and Fair Wages, the advocacy group behind the initiative, highlights how the measure would particularly benefit working parents:

"This initiative will mean that hard-working Missourians can take care of themselves and their families without risking job loss or financial instability."

Advocates further contend that paid sick leave policies are a critical tool in preventing the spread of illnesses, particularly in sectors such as food service and retail, where employees frequently interact with the public. They point out that the COVID-19 pandemic brought increased attention to the necessity of paid leave for workers to stay home when sick without facing a loss of income.

Opponents of the sick leave requirement, including business advocacy groups like the Missouri Chamber of Commerce and Industry, argue that mandating paid sick leave would impose additional financial burdens on businesses, especially small employers. They claim that these added costs could lead to negative economic consequences, such as reduced hiring or increased prices for goods and services. They also argue that businesses should have flexibility in determining their own paid leave policies, rather than being subject to state mandates:

"Small businesses, in particular, are already struggling with rising costs. Imposing mandatory paid leave requirements, on top of increasing the minimum wage, will only exacerbate these challenges."

Opponents also suggest that mandatory sick leave could lead to abuses by employees who might take time off when it’s not truly necessary, further driving up costs for employers who are already dealing with staffing shortages in certain sectors.

Minimum Wage and Paid Sick Leave Comparisons

To understand how Missouri’s proposal compares to neighboring states, here is a summary of the current minimum wage laws (sorted by hourly wage):

State Min Wage Paid Sick Leave
Iowa $7.25 (federal) No state requirement
Kansas $7.25 (federal) No state requirement
Arkansas $11.00 No state requirement
Missouri (currently) $12.30 No state requirement
Missouri (if Prop A passes) $15.00 (by 2026) 1 hour for every 30 hours worked
Nebraska $15.00 (by 2026) No state requirement
Illinois $15.00 No state requirement

Supporter Viewpoints:

Proposition A has garnered strong support from labor organizations and advocacy groups who believe the initiative will benefit Missouri’s workforce. Missourians for Healthy Families and Fair Wages, the campaign leading the effort, argues that raising the minimum wage to $15 by 2026 and implementing paid sick leave would help struggling families meet rising costs.

The organization stated, "Missouri’s economy should reward hard work and not punish people for getting sick. This initiative will help tens of thousands of Missouri parents and their children by providing needed time off from work and gradually increasing the minimum wage over three years."

In addition to advocacy groups, State Representative Crystal Quade has voiced support, highlighting the challenges many workers face. She emphasized, "So many parents and people are working multiple minimum wage jobs to get by because they can’t actually find good quality, high-paying jobs in the state of Missouri. As a working parent myself, I understand what it means when my kid gets sick, and I have to call in and wonder what that means for my job and security."

Opponent Viewpoints:

Opposition to Proposition A is largely driven by business associations and industry groups like the Missouri Chamber of Commerce and Industry, which has expressed concerns over the economic impact on small businesses. They argue that increasing labor costs through higher minimum wages and mandated paid sick leave could result in reduced hiring, job cuts, or increased prices for consumers.

Lt. Governor Mike Kehoe also opposes the measure, stating, "Minimum wages will cause prices to rise on the most basic of products. It also leaves a void for young people who want to start at an entry-level job. You take those jobs away from them."

Additionally, business owners and groups assert that while the initiative may seem beneficial on the surface, it could create more difficulties for employers already grappling with labor shortages and inflation. The Missouri Restaurant Association and other industry representatives argue that raising wages and requiring paid leave will drive up operational costs and may lead to fewer employment opportunities for entry-level workers.

Conclusion

Proposition A will ask Missouri voters to weigh the benefits of increased wages and paid sick leave against potential concerns about the impact on businesses. With Missouri's current minimum wage already above the federal level, this proposal would bring it in line with Illinois and Nebraska, while also adding paid sick leave benefits for employees. As always, voters are encouraged to carefully evaluate both the benefits and potential downsides of the proposal before making their decision at the ballot box.

Where to Find More Information