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In recent years, Missouri has taken the lead on raising the minimum wage—well ahead of the unchanged federal rate of $7.25 per hour. Most recently, in November 2024, Missouri voters approved Proposition A, a ballot measure designed to increase the state minimum wage to $15 per hour by 2026 and tie future increases to inflation beginning in 2027.
Proposition A also introduced a new paid sick leave mandate, requiring most private employers to provide one hour of paid sick time for every 30 hours worked, paid at the employee’s regular rate. Together, these measures represented one of the most ambitious worker protection expansions in Missouri’s recent history.
But that trajectory has now shifted. In July 2025, Missouri enacted legislation repealing key portions of Proposition A—halting future cost-of-living wage increases and ending the state’s paid sick leave law, effective August 28, 2025.
Missouri’s broader wage growth began with Proposition B in 2018, which raised the minimum wage to $8.60 in 2019 and added $0.85 per year until the rate reached $12 in 2023. The current statewide minimum wage—$13.75 per hour—took effect on January 1, 2025 and will rise to $15 per hour in 2026, as originally planned.
In April 2025, the Missouri Supreme Court upheld Proposition A, confirming Missouri’s minimum wage increase to $15 per hour starting January 1, 2026.
On July 10, 2025, Missouri Governor Mike Kehoe signed HB 567, officially repealing Proposition A. The repeal takes effect on August 28, 2025. While the minimum wage will still increase to $15 per hour in 2026, the annual inflation-based increases originally scheduled to begin in 2027 will no longer occur.
Employers must continue to provide paid sick leave benefits under Proposition A through August 27, 2025. After that date, the statewide paid leave requirement will be eliminated as part of the signed repeal.
RELATED: Missouri Paid Sick Leave Law Repealed - Changes Take Effect August 28 >>
At the federal level, Missouri Sen. Josh Hawley and Vermont Sen. Peter Welch introduced a bill in mid-June 2025 to raise the federal minimum wage to $15 per hour. However, the current federal minimum remains at $7.25 per hour—unchanged since 2009.
Kansas’ minimum wage also matches the federal rate at $7.25, and the state has not announced any plans to change it. Employers operating in both Missouri and Kansas should be mindful of the differences.
Most Missouri employers will still be required to raise employee pay to $15 per hour in 2026 under the law, despite the repeal of future increases. However, some small businesses remain exempt from Missouri’s minimum wage requirements.
Retail or service employers with annual gross income under $500,000 are not subject to the state minimum wage law. According to the Missouri Department of Labor, these businesses have the discretion to set their own pay rates—though federal wage laws may still apply depending on the nature of the business and its employees.
Even if your business qualifies for an exemption, it’s wise to evaluate the potential impact of paying below the prevailing rate. Competitive wages can play a key role in attracting and retaining talent, especially in a tight labor market.
RELATED: Is Your Employee Compensation Plan Competitive >>
Missouri’s minimum wage landscape has shifted significantly in a short period. While the increase to $15 per hour in 2026 is locked in, the CPI-based hikes and statewide paid leave requirements have been repealed. Employers must comply with the law by August 27 and make policy adjustments moving forward.
If you're an Axcet client, you don’t have to navigate these changes alone. Our certified HR and payroll experts are here to help you stay compliant and confident. Reach out to your dedicated consultant with any questions.
Not yet an Axcet client? Learn more about our certified PEO services or schedule a consultation today >>
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