Proposition A Update: What You Need to Know

Your Compliance Matters! Let Us Help You Navigate Proposition A.

Elliott, Robinson & Company wants to update you on Missouri Proposition A, which establishes new sick leave pay requirements and is scheduled to take effect on May 1, 2025. While there is still uncertainty surrounding the law, we want to provide you with information regarding the latest legal developments.

Proposition A faced a legal challenge in McCarty v. Secretary of State before the Missouri Supreme Court. Oral arguments were heard on March 12, 2025, and a ruling was made on April 29, 2025, affirming what was passed in November 2024; therefore, eligible employees begin accruing paid leave on May 1, 2025.

The Missouri Legislature is considering House Bill 567 (HB 567), which would repeal the paid leave provisions of Proposition A if passed. The Missouri House of Representatives passed HB 567 on March 13, 2025, but did not adopt an emergency clause, which would allow the law to go into effect immediately with the Governor’s signature. The bill is now being considered by the Senate. If approved by the Senate, HB 567 would then move to the Governor for his approval. However, unless the Senate approves an emergency clause, the law will not go into effect until August 28, 2025 – after employers are required to begin accruing sick pay leave.

Unless legislative action changes the law, Proposition A remains in effect; and, here is how we can help. We can:

• Provide an Excel spreadsheet that will allow you to track sick pay hours accrued – provided at no cost
• Assist with tracking setup and/or maintain the tracking for your business – $250 setup fee plus additional fee for maintaining, which will be billed at our standard hourly rates
• Assist in drafting a written sick leave policy – invoiced at our HR Advisor’s hourly rate of $150/hour

Please reach out to your ERCPA contact if you would like to discuss how we can help your business comply with Proposition A.

As previously communicated, details regarding the new sick leave pay requirements under Proposition A are provided below:

The new law applies to ALL private employers in Missouri, regardless of the size of the employer’s workforce; however, employees working in a “retail or service business” with less than $500,000 in annual gross sales are excluded from coverage.

Employers with existing paid time off or vacation policies that provide sufficient leave that meets the minimum requirements of the law are not required to provide employees with additional paid time off. However, all employers – even those with existing paid leave policies – should carefully evaluate all requirements, including the documentation, notice and carryover/payout requirements.

Beginning May 1, 2025, employees (both full-time and part-time) will begin accruing paid sick leave at a rate of one hour for every 30 hours worked. Employers will need to prepare revised or new policies to address this benefit. See below for other notable requirements of the new law:

No Accrual Maximum
There is no maximum amount of sick leave an employee can accrue. However, the amount of paid sick leave the employee can use each year is limited.

• Employers with 15 or more employees may limit an employee’s use of paid sick leave to 56 hours per year.
• Employers with 14 or less employees may limit an employee’s use of paid sick leave to 40 hours per year.

Carryover Requirements
Employees may carry over up to 80 hours of unused earned paid sick time from one year to the next. You may still limit them to using no more than the applicable annual use cap listed above. Alternatively, employers can pay out accrued, unused paid sick leave hours at the end of each year.

• There is no requirement to pay out any unused sick leave hours when an employee separates from employment for any reason.

Frontloading
Employers are permitted to “frontload” paid sick leave at the beginning of the year, meaning they provide the full allotment of leave upfront, rather than accruing it over time.

Notice to Employees
A written notice about the new paid sick leave law and the employer’s leave policy must be given to employees on or before April 15, 2025. For employees hired after that date, employers will have 14 days to provide the written notice.

Salaried Employees
Employees who are exempt from overtime requirements will be assumed to work 40 hours each week for purposes of earning sick time. If their normal work week is less than 40 hours each week, they will accrue sick leave based on the actual number of hours worked.

Use of Leave
Paid sick leave can be used for a variety of reasons, not limited to the employees’ health but also caring for a family member. An employee may use it as soon as it is accrued and in the smallest increment that the employer’s payroll system uses to account for absences or use of time.

The FAQ summary can be found online:
https://mochamber.com/news-archive/proposition-a-what-employers-need-to-know/

The full text of the Proposition A bill is below:
https://www.sos.mo.gov/CMSImages/Elections/Petitions/2024-038.pdf

If you have any questions specific to your organization, please contact us.