Navigating the Repeal of MO Paid Sick Leave

In November 2024, Missouri voters approved Proposition A, Chapter 290 R.S.Mo, (‘Prop A”) which required most private employers to provide paid sick leave to employees beginning May 1, 2025 (PSL). At the end of Missouri’s 2025 legislative session, on May 30, 2025, HB567 was passed, which amended Chapter 290 R.S.Mo and repealed Missouri’s PSL. Governor Kehoe signed HB567 on July 10, 2025, and the repeal became effective on August 28, 2025. This left businesses in uncharted territory because they still had to comply with the accrual, notice, and usage requirements of PSL until August 28th.

The issue then becomes what are businesses to do after August 28th, 2025, with paid sick leave accrued but not used between the period May 30, 2025, and August 28, 2025 (“Accrued Balances”). The law was in effect for 119 days. There is no administrative guidance, regulatory precedent, or clear state law on point to guide businesses. At the minimum, employers should take down their Prop A notices and notify employees of the changes and decide how the Accrued Balances will be handled. For some companies, that already allowed accrual of paid sick leave, the repeal is not an issue.

Things to Consider

Subject to your current paid time off policies, for those who are affected, here are some things to consider:

Separating Employees. Separating employees were not entitled to Paid Sick Leave under PSL and are not now unless employer has other policies providing such payouts.
Bookkeeping. Maintain compliance records for three years or until August 28, 2028, in case of lawsuit.
Current Employees. Several choices exist. The riskiest one, taking away the Accrued Balance, may result in lawsuits because constitutional and municipal case law exists which defines accrued paid time as wages and a property right. A middle ground would be to allow employees to take the Accrued Balance until December 31, 2025, and not to pay out the remaining time. A safer one would be to take the middle ground but pay out the remaining Accrued Balance. There are certainly other options that could mix with your current policy.

Please work with your counsel on the best approach for your company.