New Missouri Law Regarding Sick Pay
Missouri Voters Pass New Paid Sick Leave Law Newsletter 11.11.2024 On November 5, Missourians voted to approve Proposition A, a referendum implementing mandatory paid sick leave law for Missouri employees.1 Thus, effective May 1, 2025, Missouri will join the growing list of states that require employers to provide paid sick leave to their employees. Broad Coverage with Narrow Exceptions The new law applies to all private Missouri employers, regardless of the size of the employer’s workforce; however, employees working for an interstate railroad carrier, a local newspaper with circulation under 4,000, or “a retail or service business” with less than $500,000 in “annual gross volume sales made or business done” are excluded from coverage. With very few exceptions (e.g., temporary camp workers, casual babysitters, and certain nonprofit volunteers), nearly all other employees working for private employers in Missouri will be entitled to earn and use paid sick leave under the new law. Accrual & Carryover of Paid Sick Time For all eligible employees, accrual begins on the later of May 1, 2025, or the employee’s hire date. Eligible employees will accrue one (1) hour of paid sick leave for every thirty (30) hours worked. However, for purposes of calculating accruals, an employee who is exempt from overtime requirements under the Fair Labor Standards Act’s executive, professional, or administrative exemptions is assumed to have worked 40 hours per week unless such employee’s normal workweek is less than 40 hours, in which case accruals may be based on the number of hours in such employee’s normal workweek. While employers and employees may bargain collectively or contract for more favorable paid leave benefits above what the new law requires, any private agreement that waives or reduces the minimums set by the new law will be void. Covered employers must allow eligible employees to carry over from one year to the next up to 80 accrued, unused paid sick leave hours. Alternatively, an employer can pay out such accrued, unused paid sick leave hours at the end of each year. The new law does not require covered employers to pay out any unused paid sick leave hours when an employee separates from employment for any reason.