Legislative Report

Sheri Hamilton, MWACA Executive Director

Missouri Legislative Update

SICK LEAVE & MINIMUM WAGE

On July 10, 2025, Missouri Governor Mike Kehoe signed House Bill 567 (HB 567) into law. This legislation includes two major changes that may impact your business operations:

Key Changes Effective August 28, 2025:

1. Repeal of Paid Sick Leave Mandate
   • The paid sick leave requirements enacted by Proposition A will no longer be in effect.
   • Employees will no longer accrue or use paid sick leave under this law.
   • Employers may legally roll back any policies implemented to comply with Prop A.
   • There is currently no definitive legal guidance on whether unused sick leave must be honored or paid out.
2. Minimum Wage Adjustments
   • The law repeals automatic annual increases to the minimum wage.
   • However, the scheduled increase to $15.00/hour on January 1, 2026, remains in place.

If you adjusted your PTO or vacation policies to comply with Prop A, you may revert to your original policies starting August 28. Please consult with your legal or HR advisors to determine the best course of action for your organization.

TEM TAGS & SALES TAX

This new bill tackles several things within the Missouri Department of Revenue’s vehicle buying and registration process — and yes, it hits St. Louis right where it counts with those temporary tags starting August 28th.  Here’s the scoop from Section 301.140 in SB 28: DMVs will now only hand out a 30-day temporary plate for trade-in cars still on a loan. That means no more 90-day tags.  Plus, you’ll pay your sales tax at the dealership before getting your temporary plate. Before, you had 30 days after buying the title to cough up the sales tax. No more waiting! Oh, and one more thing — administrative fees are going up from 1% to 3.5%.