Missouri is set to implement a new statewide paid sick leave law, following the approval of Proposition A by voters. This legislation imposes new obligations on employers. As an employer, it's crucial to understand the nuances of this law to ensure compliance and effectively manage workforce policies.
The law is scheduled to take effect on May 1, 2025. It applies to all private employers in Missouri with a few noted exemptions such as the federal and state government, political subdivisions, including agencies, boards, commissions, or instrumentalities of the state, counties, municipalities, school districts, and public higher education institutions. Private retail and service businesses whose annual gross volume sales made or business done is less than five hundred thousand dollars are also exempt.
Beginning May 1, 2025, eligible employees will accrue a minimum of one hour of paid sick leave for every 30 hours worked. Employers have the option to provide this leave as it is accrued or to front-load the entire annual allotment at the beginning of the year.
Employers with 15 or more employees may limit employees to using 56 hours of paid sick time each year. All other employers can limit usage to 40 hours annually. Unused paid sick time carries over into the following year, with a maximum of 80 hours allowed to roll over. Alternatively, employers may choose to pay employees for unused leave at year-end, provided they offer the full required leave amount upfront for the subsequent year.
Employees can utilize their earned paid sick time as soon as it is earned for various purposes, including:
- Personal or family illnesses, injuries, or health conditions.
- Preventive medical care.
- Safe leave related to domestic violence, sexual assault, or stalking.
- Absences due to public health emergencies, such as workplace or school closures.
- Caring for oneself or a family member after exposure to a communicable disease.
Here is a check list of items employers need to consider for compliance:
Notify Employees: Provide written notice about the paid sick leave law by April 15, 2025 and within 14 days of employment thereafter. The Missouri Department of Labor and Industrial Relations have issued a model notice and poster for this purpose. The poster can be displayed with your state and federal employment posters. Notices are to be printed and handed directly to employees.
Make Decisions: Are you going to let balances accrue or front load the time? Do you want to allow for carry over at year end or pay out the balance of time? Will you manage paid sick time as part of your current PTO balance or as a separate bank of time? Do you want to implement an annual use cap? Please note, some of these decisions are dependent on one another so make sure you fully understand the requirements for each decision.
Review Record Keeping Systems: You must keep records of hours worked and paid sick time taken for at least three years. These records must be accessible for inspection by the Department of Labor and Industrial Relations to ensure compliance.
Consider Current Policies: You need to make sure your actions and policies are compliant with the new law. Begin considering adjustments you need to make to the way you document absences, handle discipline, and request documentation. For absences of three or more consecutive workdays, employers may request reasonable documentation to substantiate the need for leave. However, employers cannot require detailed information regarding the nature of illnesses or personal circumstances related to domestic violence, unless otherwise mandated by law.
By proactively addressing these areas, employers can foster a supportive work environment that complies with Missouri's new paid sick leave law, thereby enhancing employee satisfaction and mitigating legal risks.
Need help ensuring you are in compliance? HR Managed can assist. We strongly recommend that you consult legal counsel or an HR professional to ensure you are fully in compliance.