Kehoe Signs Proposition A Relief Bill

Missouri Governor Mike Kehoe signed HB 567 into law today, providing relief to businesses by removing Proposition A’s paid sick leave mandate. The bill, sponsored by Rep. Sherri Gallick of Belton and handled in the Senate by Sen. Mike Bernskoetter of Jefferson City, keeps the statewide minimum wage at $15 but eliminates automatic annual wage increases tied to the Consumer Price Index. The law takes effect August 28.

Proposition A, passed last year, required paid sick leave for all employees and set up yearly minimum wage hikes based on inflation. Business groups, including the Missouri Chamber of Commerce and Industry, argued that these mandates made it harder to plan and threatened jobs, especially for small and mid-sized companies. The Chamber led a coalition of over 550 businesses to advocate for HB 567 as its top legislative priority in 2025.

Chamber President Kara Corches praised the new law, saying, “Business owners were clear: Proposition A’s paid leave and minimum wage policies were a job killer. Missouri employers value their employees and recognize the importance of offering competitive wages and benefits, but one-size-fits-all mandates threaten growth.”

While the business community welcomes the change, worker advocates warn that ending the sick leave requirement removes a vital protection, especially for low-wage employees. They also caution that eliminating CPI-based wage increases could allow inflation to erode workers’ buying power.

Looking ahead, Proposition A supporters have already filed paperwork for a 2026 constitutional amendment to restore the paid sick leave mandate and CPI-linked wage hikes. Both business and worker advocacy groups are preparing for a renewed battle over Missouri’s labor laws.

For now, Missouri employers will see more flexibility and predictability in managing labor costs, but the debate over paid leave and minimum wage policy is far from over.

KPGZ News – Brian Watts contributed to this story