As a dedicated HR and compliance partner, Invo PEO stands ready to help organizations in Missouri weather the evolving legal landscape—especially in light of the recent repeal of the state’s paid sick leave law.
What’s Happened?
In November 2024, Missouri voters approved Proposition A, which included provisions to: Raise the state minimum wage to $15 by 2026, then adjust it annually for inflation from 2027 onward. Require employers to provide “earned paid sick time” at a rate of one hour per 30 hours worked, effective May 1, 2025. Accrual caps were set: up to 40 hours/year for businesses with fewer than 15 employees; up to 56 hours/year for larger employers, with up to 80 hours carry‑over. However, on July 10, 2025, Governor Mike Kehoe signed House Bill 567, repealing those earned paid sick time provisions as of August 28, 2025—just weeks before they were set to take effect. The repeal, part of a broader pro‑business package including tax cuts, was defended as protecting small businesses from burdensome mandates—though it sparked strong backlash from labor advocates who called it a betrayal of voter intent.
Pros (from a business standpoint)
Reduced compliance burden: Employers no longer need to track accrual, use, or manage documentation for paid sick leave. Cost savings: No financial obligation to pay for sick time, reducing payroll and administrative overhead. Flexibility: Businesses regain autonomy over leave policies—effective immediately after August 28.
Cons (for employees and advocates)
Loss of earned sick leave: Workers lose access to newly established protections, particularly vulnerable populations in low‑wage sectors. Public health concerns: Without sick leave, employees may work while ill, impacting overall workplace and community health. Political backlash: Voters who approved the measure may feel disenfranchised, potentially damaging employer‑employee trust.
How INVO PEO Advises Employers to Respond
1. Communicate Clearly and Proactively Explain next steps to employees: While accrual halts on August 28, any sick time earned between May 1 and August 28 can still be used—if your organization allows it. Ensure your written policies reflect the repeal and compliance end date.
2. Evaluate Your Leave Strategy Even without a legal mandate, many businesses may voluntarily maintain paid sick leave, recognizing its impact on employee morale and retention. Some HR leaders on Reddit shared: “As a business owner…we instituted it for all our employees anyway…just the right thing to do. Won’t be taking it away now.” -Reddit User
3. Streamline Documentation & Transition Discontinue mandatory accrual procedures post‑August 28. Retain records of accruals from May 1 to August 28, as required by law.
4. Prepare for Policy Realignments Advocacy groups are already pushing for a constitutional amendment in 2026 to reinstate paid sick leave in a more enduring form. Invo PEO can support your team by:
● Monitoring ballot developments and legal shifts.
● Updating handbooks and employee communications as needed.
● Advising on potential flexible leave frameworks in the interim.
5. Mitigate Employee Relations Risk Even voluntary benefits can be phased out in a way that maintains goodwill—by offering phased reductions, grandfathering existing policies, or introducing alternative perks.
