Missouri Required Sick Leave

Effective May 1, 2025, employers with fewer than 15 employees must provide up to 40 hours of paid sick leave each year, and employers with 15 or more employees must provide up to 56 hours of paid sick leave per year. Employees will earn one hour of paid sick leave for every 30 hours worked

When does the new law take effect?

If your employees are covered, the employee must be informed in writing their rights to the sick leave by April 15th, 2025, or 14 days from hire. A compliance poster must be hung as well.  The employee will need to begin accruing paid sick leave on May 1, 2025, or date of hire.

Who is covered by this law?

This is best answered by listing who is not covered as everyone else is covered. Here is the list of exceptions:

• State, City or County (any government positions)

• Educational

• Charitable

• Religious 

• Nonprofit where the work is voluntary

• Employed at a private residence on an occasional basis for six hours or less on each occasion

• Casual baby-sitting 

• If the employer’s annual gross sales are less than $500,000

What if a paid time off policy (PTO/Vacation) is already in place?

If the policy in place or a new policy is put in place, that makes available an amount of paid leave that is equivalent to or greater than this new law and can be used for the same purpose, a separate sick leave policy is not required.

How are the leave hours accrued?

Non-Exempt Employees shall accrue a minimum of one hour of paid sick time for every thirty hours worked.

Exempt Employees worked hours will be assumed to be 40hrs per week unless their normal work week is less than 40. 

Are there limits to how many hours an employee can use?

15 or more employees - 56 hours per year

Less than 15 employees – 40 hours per year

Employees must be allowed to either rollover up to 80 hours of accrued but unused sick leave or be paid out for these hours. This does not mean that the employee must be allowed all the hours they have available. The employee can still be limited to the hours per year mentioned above, based on the employee counts. 

You can allow the employees to use or roll over more hours per year, these are the minimums.

What if the employee count fluctuates around 15?

If all full-time, part-time and temporary employees total 15 or more for even a single day of a workweek for 20 or more weeks, the requirement for employers with 15 or more employees will apply.  The workweeks do not need to be consecutive.  

Do we have to pay out the accrued leave if the employee is terminated or quits? 

No, it is specifically stated that no part of this law requires a payout due to a termination of employment, no matter the reason. 

What about rehires?

If the employee returns in less than 9 months, their previous balance must be reinstated. 

How do I determine the rate of pay for the leave?

The law states that the employee must be paid at their regular rate of pay. For an employee who is only paid at one rate, this is an easy answer but for those who are paid at multiple rates or other bases the rate will need to be calculated.

     Multiple Rates of Pay: Use a consistent method for each employee throughout the year.          The options the law gives us are:

               1) The rate they would have been paid if they had worked the time instead of the sick leave.       

                OR

                2) The weighted average of all hourly rates of pay during the previous pay period.

Piece Rate – Use a reasonable calculation of the wages or fees the employee would have received for the piecework or service(s) that they would have earned. 

Commission (Base Wage Plus Commission or Commission Only) – The greater of, the base wage or the current minimum wage.  

Tipped (Servers, Bartenders and other of the like) – The greater of, the employee’s regular rate or 100% current minimum wage. NOT the 50% of minimum wage allowed due to the off set from tips. 

Salary – The hourly rate will be determined by dividing the wages the employee earned in the previous pay period divided by the hours worked. If the employee is exempt from tracking hours the employees worked hours will be assumed to be 40hrs per week unless their normal work week is less than 40. 

Can we require notice and / or documentation?

You must have a policy explaining the notification process for foreseeable and unforeseeable need of leave. 

Reasonable documentation can be required if the leave is for three or more consecutive workdays.  The specifics of the reason for leave should not be required, a doctor’s note, or something of the like, stating that the employee should not, or cannot be at work will have to service. 

Failure to comply with the requirements of this new law can result in a class C misdemeanor, and the employee can bring a class action suit against you. 

Posted Date: 2024-11-11

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