Businesses contest the minimum wage rise and paid leave in court

Published On:
Businesses contest the minimum wage rise and paid leave in court

Missouri voters approved a constitutional amendment in November that guaranteed paid leave and a higher minimum wage. Businesses are now hoping that the Missouri Supreme Court will strike it down.

Proposition A was approved by 57.6% of voters in the November election. It includes increasing Missouri’s minimum hourly wage to $15 and ensuring paid time off. The amount of compensated leave is determined by the length of time worked and the size of the employer.

Organizations representing Missouri businesses filed a lawsuit to invalidate Proposition A. Court documents state that the election results must be overturned due to “irregularities” and “constitutional violations.”

Ray McCarty is the president and CEO of Associated Industries of Missouri, one of the plaintiffs. He claimed that the ballot title omitted important details about the measure.

“The Missouri Constitution requires a single subject which must be clearly stated in the title,” according to McCarty. “We believe Proposition A violated that because it covered both minimum wage, paid sick leave and paid domestic violence leave, which was not even mentioned in the ballot title.”

Plaintiffs also intend to address the measure’s fiscal note summary. The state auditor creates this brief document to include potential financial impacts on the government.

“It doesn’t even mention the cost or savings to local government,” plaintiff attorney Marc Ellinger stated. “Furthermore, there were local governments that advised that there were costs, and those costs were not included in the fiscal note summary.”

Unless overturned by the state Supreme Court, the paid leave portion of Proposition A will take effect on May 1 and the $15 minimum wage on January 1, 2026.

While next week’s hearing will only address the measure’s legality, court documents filed by the plaintiffs state that it is “bad policy and will have extreme and detrimental effects on Missouri’s businesses.”

Dan Shaul is the Executive State Director of the Missouri Grocers Association. He believes the more concerning aspect of the ballot measure is requiring employers to provide paid sick leave.

“I need to have some certainty of when employees will be in and out,” Shaul informed me. “Not just deciding to take time off when it’s convenient for them but not convenient for the employer.”

Shaul also expressed hope for a decision before the sick leave takes effect in May.

“If the Supreme Court doesn’t rule by May 1, the train has left the station,” he said. “I’d be very disappointed if they didn’t rule very quickly.”

The state Supreme Court will hear arguments for and against Proposition A on March 12. Hearings start at 9 a.m.

SOURCE

Leave a Comment