Missouri employers might feel confused about the upcoming minimum wage increase set to take effect on January 1. While voters passed Proposition A in 2024 to increase the minimum wage to $15 per hour and require most employers to provide paid sick leave for certain purposes, Governor Kehoe rescinded the statewide sick time mandate in 2025 and also did away with Proposition A’s annual adjustments for inflation. With this will-they-won’t-they legal landscape, many Missouri employers may feel lost about what is required of them when the calendar flips to 2026, but have no fear – your FP employment lawyers are here with the scoop on what you need to know.
New Year, New Wage
Missouri’s minimum wage will increase by $1.25 for the second year in a row on January 1, 2026, rising from $13.75 to $15.00 an hour. However, because of the new law signed by Governor Kehoe, the rate won’t automatically increase for inflation on subsequent January 1sts as originally anticipated. This increase will solidify Missouri as one of the states with the highest minimum wage rates across the country, and is projected to impact one in four Missouri workers.
Does This Apply to Our Business?
Certain categories of employment will be exempt from the increase, including:
- governmental entities like school districts,
- casual and seasonal employees,
- and retail workers at businesses whose annual gross volume sales are less than $500,000.
Missouri’s minimum wage is currently higher than the federal rate and...
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