Client Alert | On the Horizon: How ‘Proposition A’ Could Revolutionize Sick Leave in Missouri

October 28, 2024
Written by Anne Kerns, Natalie Hoernschemeyer & Grant Wiens

Proposition A, on the ballot for November 5, 2024, if passed, requires Missouri employers to provide earned paid sick time to eligible employees and gradually increases the minimum wage. This document outlines the key takeaways on how Proposition A will affect employers.

Which employers will have to comply with Proposition A if it passes?

Private employers must comply with both the earned paid sick leave provisions (with limited exceptions) and the proposed minimum wage increases.

Proposition A does not apply to public employers, which are defined in the proposed statute as “the state or a political subdivision of the state, including a department, agency, officer, bureau, division, board, commission, or instrumentality of the state, or a city, town, village, school district, or other political subdivision of the state.”

What are the proposed minimum wage changes?

  • Starting January 1, 2025: The minimum wage will increase to $13.75 per hour.
  • Effective January 1, 2026: The minimum wage will further increase to $15.00 per hour.
  • Following these increases, the minimum wage will be adjusted annually based on the Consumer Price Index (CPI).

How will paid sick time accrue?

Employees will accrue 1 hour of paid sick time for every 30 hours worked. The maximum allowable usage per year depends on employer size:

  • Employers with 15 or more employees: Employees can use up to 56 hours of earned paid sick time annually.
  • Employers with fewer than 15 employees: Employees can use up to 40 hours of earned paid sick time annually.

*Salary-exempt employees are presumed to work a 40-hour workweek.

When will paid sick time begin accruing?

Employees will start accruing paid sick time on May 1, 2025. For new hires (after May 1, 2025), accrual will start on the employee’s first day of employment.

When can employees use earned paid sick time?

Employees are entitled to use earned paid sick time as it accrues. An employer can choose to provide all earned paid sick time an employee is expected to accrue in a year at the beginning of the year.

Will earned paid sick time carry over from year to year?

Employees can carry over up to 80 hours of earned paid sick time to the following calendar year.  However, employers are not required to allow employees to use more than the annual limit (56 hours or 40 hours pending on employer size).

In lieu of carrying over unused earned paid sick time from one year to the next, an employer may decide to pay an employee for unused earned paid sick time at the end of the year. Employers who choose to do this must front load earned sick time at the beginning of the new year and make it available for the employee’s immediate use.

Will employers have to pay out accrued paid sick time upon an employee’s separation from employment?

No.  However, if an employee is re-hired by the company within nine (9) months of their departure, any accrued but unused time must be reinstated.

For what type of situations can an employee use earned paid sick time?

Under Proposition A, employees may use paid sick time for broader reasons than those covered by the Family Medical Leave Act. Qualifying reasons include:

  • An employee’s own mental or physical illness, injury or health condition
  • Care of a family member with a mental or physical illness, injury or health condition
  • Closure of the employee’s workplace by a public health official or closure of a child’s school or place of care due to a public health emergency
  • Absence due to domestic violence, sexual assault or stalking

Can employers deny the use of earned paid sick time?

No.  Employers must grant use of earned paid sick time upon request. For foreseeable leave, employees should provide advance notice; otherwise, they should notify employers as soon as possible.

Is documentation required for using paid sick time?

Yes, but only if earned paid sick time has been used for three (3) or more consecutive days.  In this case, an employer can require reasonable documentation verifying the qualifying reason.

What happens if my employer already has a paid leave policy?

Employers with an existing paid leave policy (e.g., paid time off) that meets or exceeds the requirements of Proposition A and allows for the same usage conditions are not required to provide additional paid sick time.

Does Proposition A include other rules for employers?

Yes. Proposition A includes several other rules employers must follow surrounding earned paid sick time, for example, anti-retaliation and discrimination provisions, notice provisions, and record retention provisions.

We’re Here to Help

If you have any questions or concerns about what impact Proposition A will have on employers, please don’t hesitate to reach out to us directly.  Should Proposition A pass, we are here to help you bring your sick leave policy into compliance.

 

Our team of professionals welcomes the opportunity to serve your needs.

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