Missouri Minimum Wage and Paid Sick Leave Proposal
Missouri voters are considering a significant amendment to state labor laws that would fundamentally change how the minimum wage is calculated and how sick leave is administered across the state. The proposal seeks to raise the baseline pay for workers and introduce a mechanism to ensure wages keep pace with inflation.
Proposed Minimum Wage Increases
The amendment outlines a phased approach to increasing the state minimum wage. Starting January 1, 2025, the rate would rise to $13.75 per hour. This would be followed by an annual increase of $1.25 per hour, reaching a target of $15.00 per hour by January 2026.
To prevent the erosion of purchasing power over time, the proposal introduces a cost-of-living adjustment. Beginning in January 2027, the minimum wage would be adjusted annually based on the Consumer Price Index (CPI), a measure that examines the weighted average of prices of a basket of consumer goods and services.
[ไม่มีภาพประกอบ]Paid Sick Leave and Enforcement
Beyond hourly pay, the measure introduces new requirements for employee benefits. Specifically, employers with fifteen or more employees would be required to provide one hour of paid sick leave for every thirty hours worked.
To ensure these new standards are met, the Department of Labor and Industrial Relations would be granted the authority to provide oversight and enforcement of the law.
Exemptions and Fiscal Impact
Not all employers would be subject to these changes. The proposal explicitly exempts governmental entities, political subdivisions, school districts, and education institutions from the minimum wage increase.
From a financial perspective, state governmental entities estimate a one-time cost of $660,000 and ongoing annual costs of at least $5.2 million. These costs are offset by an estimated initial license fee revenue of $11.75 million. Additionally, because the proposal allows for deductions against sports gaming revenues, there is an estimated unknown tax revenue impact ranging from $0 to $28.9 million annually. Local government revenue impacts remain unknown.
| Feature | Proposed Change |
|---|---|
| Minimum Wage (Jan 1, 2025) | $13.75 per hour |
| Minimum Wage (Jan 2026) | $15.00 per hour |
| Inflation Adjustment | Based on Consumer Price Index (starting 2027) |
| Paid Sick Leave | 1 hour per 30 hours worked (for employers with 15+ staff) |
| Exemptions | Govt entities, political subdivisions, school districts, education institutions |
Key Facts
- The minimum wage would reach $15.00 per hour by 2026.
- Annual CPI adjustments begin in 2027 to maintain wage value.
- Paid sick leave is mandated for employers with 15 or more employees.
- The Department of Labor and Industrial Relations will handle enforcement.
- Governmental and educational institutions are exempt from the wage increase.
- The measure is estimated to have no direct impact on taxes.
Frequently Asked Questions
What happens if I vote "Yes"?
A "yes" vote amends Missouri statutes to increase the minimum wage to $13.75 in 2025 and $15.00 in 2026, mandates paid sick leave for larger employers, and implements annual CPI adjustments starting in 2027.
What happens if I vote "No"?
A "no" vote means Missouri law will not be amended, and the current state minimum wage laws will remain unchanged.
Which employers are exempt from the minimum wage increase?
Governmental entities, political subdivisions, school districts, and education institutions are exempt from the proposed increase.
How is the paid sick leave calculated?
Eligible employers must provide one hour of paid sick leave for every thirty hours an employee works.
Will this proposal increase my taxes?
According to the fair ballot language, if passed, this measure will have no impact on taxes.