Legal Challenge Threatens New Missouri Minimum Wage and Paid Sick Leave Law

The Missouri Chamber of Commerce and Industry, along with other Missouri business groups, recently filed a lawsuit in the Supreme Court of Missouri attempting to stop Proposition A from taking effect. The lawsuit asserts five counts requesting the Supreme Court of Missouri set aside and/or invalidate Proposition A:

1. The fiscal note summary was insufficient and unfair because it: fails to address costs to local governments; inaccurately presents Proposition A’s actual fiscal impact; fails to identify direct costs to private employers and state administrative costs; and fails to note the impact Proposition A would have on tax revenues.
2. The summary statement was insufficient and unfair because it: fails to notify voters of the use cap on paid sick time and that it differs depending on total number of employees; improperly suggests that “all employers” would be required to provide one hour of paid sick leave for every thirty hours worked when the actual measure exempts certain employers; mispresents enforcements and oversight authority; misrepresents requirements of Missouri law; fails to properly identify which employees are excluded from the minimum wage increase; mispresents the exemptions for education institutions; fails to notify voters of creation of a new crime for failure to comply; and fails to notify voters that the new sick leave applies to non-health related reasons.
3. Proposition A violates the single subject clause of the Missouri Constitution by including both the minimum wage increase and paid sick leave.
4. Proposition A violates the clear title requirement of the Missouri Constitution because the title has more than one subject.
5. Proposition A treats similarly situated entities different in violation of the Fourteenth Amendment to the United States Constitution and Article I, Section 2 of the Missouri Constitution.

The Missouri Supreme Court has yet to set a briefing schedule or hearing on the matter. Absent a decision on the merits prior to January 1, 2025, employers should be preparing to institute the minimum wage provisions of Proposition A. Employers should also be preparing to implement the paid sick leave provisions of Proposition A beginning May 1, 2025. We previously detailed key provisions of Proposition A here.

Polsinelli will continue to monitor this lawsuit for further developments.