Missouri Governor Mike Kehoe signed HB 567 into law today, providing relief to businesses by removing Proposition A’s paid sick leave mandate. The bill, sponsored by Rep. Sherri Gallick of Belton and handled in the Senate by Sen. Mike Bernskoetter of Jefferson City, keeps the statewide minimum wage at $15 but eliminates automatic annual wage increases tied to the Consumer Price Index. The law takes effect August 28.

Proposition A, passed last year, required paid sick leave for all employees and set up yearly minimum wage hikes based on inflation. Business groups, including the Missouri Chamber of Commerce and Industry, argued that these mandates made it harder to plan and threatened jobs, especially for small and mid-sized companies. The Chamber led a coalition of over 550 businesses to advocate for HB 567 as its top legislative priority in 2025.

Chamber President Kara Corches praised the new law, saying, “Business owners were clear: Proposition A’s paid leave and minimum wage policies were a job killer. Missouri employers value their employees and recognize the importance of offering competitive wages and benefits, but one-size-fits-all mandates threaten growth.”

While the business community welcomes the change, worker advocates warn that ending the sick leave requirement removes a vital protection, especially for low-wage employees. They also caution that eliminating CPI-based wage increases could allow inflation to erode workers’ buying power.

Looking ahead, Proposition A supporters have already filed paperwork for a 2026 constitutional amendment to restore the paid sick leave mandate and CPI-linked wage hikes. Both business and worker advocacy groups are preparing for a renewed battle over Missouri’s labor laws.

For now, Missouri employers will see more flexibility and predictability in managing labor costs, but the debate over paid leave and minimum wage policy is far from over.

KPGZ News – Brian Watts contributed to this story

A renewed attempt to impose paid sick leave and automatic minimum wage increases in Missouri is drawing sharp criticism from the state’s leading business advocacy group, which warns the proposal would severely harm job creators and weaken the economy.

Backers of Proposition A have filed paperwork for Initiative Petition 2026-047, aiming to place a constitutional amendment on the 2026 ballot that would reinstate elements of the 2024 ballot initiative overturned by the legislature in 2025. That original measure required paid sick leave for all employees and set the state on course for a $15 minimum wage by 2026, with further increases tied to inflation.

Lawmakers rolled back those provisions last year through HB 567, citing the need to protect small businesses from costly mandates and unchecked wage growth tied to the Consumer Price Index (CPI). The Missouri Chamber of Commerce and Industry strongly supported the rollback, arguing that one-size-fits-all mandates damage economic competitiveness and threaten jobs.

If approved by voters, the new measure would again force employers to offer one hour of paid sick leave for every 30 hours worked, resume CPI-based wage hikes starting in 2027, and allow local governments to exceed state mandates. It would also establish a new legal cause of action, potentially exposing businesses to costly and excessive litigation.

“The requirements in this proposal would have dire effects on Missouri’s economy, annual revenue, Unemployment Insurance Trust Fund, GDP, and more,” said Kara Corches, president and CEO of the Missouri Chamber, in a letter to Secretary of State Denny Hoskins.

Business leaders are concerned. According to the Chamber’s 2025 CEO Survey, 37% of Missouri employers said the original Proposition A made them less likely to hire. Economic projections suggest the latest version could shrink Missouri’s GDP by nearly $20 billion, with an estimated $6 billion impact on the manufacturing sector alone.

“This proposal undermines the core of free enterprise by stripping businesses of the flexibility they need to compete, grow, and create jobs,” Corches said. “Missouri businesses, especially small employers, cannot afford the burden of blanket mandates and the threat of frivolous lawsuits.”

The Missouri Chamber plans to continue informing voters about the risks of Initiative Petition 2026-047 and will advocate for policies that support job creation, economic freedom, and long-term growth across the state.

KPGZ News – Brian Watts contributed to this story.