Jan. 9—Wage increases for hundreds of thousands of Missouri workers officially went into effect at the beginning of the year, following the passage of Prop A in November.
The law increases the state minimum wage from $12.30 to $13.75 an hour, and again to $15 by Jan. 1, 2026, while also boosting paid sick leave requirements for private employers.
“Prior to this increase that just happened on Jan. 1, the full-time minimum wage worker was making less than $500 a week,” said Richard von Glahn, campaign manager of Missourians for Healthy Families and Fair Wages, a Prop A support group. “We’re really excited to see some economic security being delivered to Missouri’s hard-working families.”
Supporters of the new law say it benefits workers and relieves the burden on parents forced to decide between losing pay, going to work sick or sending children to school while ill.
According to the Fairness Project, a U.S. non-profit that supports economic and social justice efforts, the law will boost access to necessities like food, housing and medical care for 137,000 parents and more than 300,000 children.
“It is estimated that one in five Missouri children live in a household that was getting a raise as of the Jan. 1st increase,” von Glahn said. “We know the positive benefits that economic security can have on child well-being.”
But the future of Prop A is now in question after officials representing some of the state’s top business groups, including the Missouri Restaurant Association, Missouri Grocers Association and Associated Industries of Missouri challenged the law as unconstitutional.
The lawsuit claims that ballot language was inefficient and voters were not fully informed about who the measure applies to and its financial impact on businesses.
“The fact that this passed is devastating to small businesses,” said Buddy Lahl, Missouri Restaurant Association CEO and a plaintiff in the case. “Trying to overturn a vote of the people is extremely unpopular. It’s not a position we want to be in. I would have preferred we have done this before it ever went to the vote.”
Along with Prop A’s gradual increase to $15, the measure requires all employers to provide one hour of paid sick leave for every 30 hours worked. Small businesses with fewer than 15 workers must offer five days of paid sick leave each year while larger businesses must provide seven days.
Lahl said many aspects of the law are cumbersome regulations for small business owners, creating additional financial challenges for entrepreneurs looking to start a business.
The lawsuit is requesting the Missouri Supreme Court overturn the Proposition on several counts, one claiming it violates a constitutional requirement that ballot issues address only one subject. Under current state legislation, an initiative petition proposing a constitutional change must contain a single subject and matters properly connected.
“The sick pay portion doesn’t kick in until May. That’s probably the bigger issue for us is the sick pay,” Lahl said. “There’s also a clause at the bottom of the initiative that says that any portion or part of the ballot initiative could be struck as unconstitutional. So the court could say that these are two separate issues.”
Exceptions to the law include retail or service businesses with an annual gross income of less than $500,000, certain full-time students who are working part time and most agricultural or farm employees. Governmental entities, political subdivisions, school districts and education institutions are also exempt.
Von Glahn said it’s unfortunate that groups are trying to overturn an initiative petition that received 58% of voter approval statewide. Results in Buchanan County were nearly identical.
“I think that’s frankly a shameful thing to do. And they would be better off working with their employers, informing their employers on what the new benefits are and how to comply with them,” von Glahn said.
No timeline has been determined on how fast the Missouri Supreme Court could rule on the lawsuit, which was filed on Dec. 6.
“Eighteen other states already have this (paid sick) requirement. Most modern economic countries have this requirement at the national level. It’s why I think you see such clear and overwhelming support,” von Glahn said.