Axcet HR Solutions Blog │Human Resources Trends, News and Insights

Missouri Paid Sick Leave Law Repealed

Written by Jeanette Coleman, SPHR & SHRM-SCP | Jul 14, 2025 3:23:29 PM

Missouri has officially repealed its short-lived statewide paid sick leave law, but employers still have compliance responsibilities for the next several weeks. On July 10, 2025, Governor Mike Kehoe signed HB 567 into law, repealing the state’s newly enacted paid sick leave mandate and halting future inflation-based increases to the minimum wage set to begin in 2027. 

The changes take effect on August 28, 2025—giving employers a short window to comply with current rules, adjust internal policies and communicate clearly with employees.

Here’s what the repeal means, what’s still in effect for now, and how Missouri employers should prepare.

Even though the law has been repealed, it doesn’t vanish immediately. Employers must continue complying with the original paid sick leave law through August 27, 2025.

That means:

  • Employees still accrue one hour of paid sick leave for every 30 hours worked.

  • Accrued sick leave must still be honored, including its job protection and anti-retaliation provisions.

  • Employers must track leave balances and allow usage in line with the law.

If your company introduced a new paid sick leave policy in response to the law that took effect May 1, now is the time to assess how you’ll handle those benefits going forward.

What Happens After August 28, 2025?

Starting August 28, employers are no longer required to provide or accrue paid sick leave under state law. However, that doesn't mean you can—or should—simply erase what’s been earned.

Here are key decisions employers will need to make:

  • Will you allow employees to keep the hours they’ve already accrued?

  • Should you roll those hours into an existing PTO policy?

  • Do you need to unwind temporary changes made to accommodate the law—such as more relaxed usage rules or eligibility thresholds?

There is no current state guidance on how to implement the repeal, which means employers are responsible for deciding how to proceed in a way that’s legally sound and culturally appropriate.

RELATED: Can PTO Be Denied? >>

Minimum Wage Changes: What's Staying and What’s Not

While much of the focus has been on paid sick leave, HB 567 also affects Missouri’s minimum wage schedule.

Here’s the breakdown:

  • The current $13.75/hour minimum wage remains in place for 2025.

  • The previously approved increase to $15/hour in 2026 will still go forward.

  • However, automatic annual increases tied to inflation (CPI) beyond 2026 have been eliminated.

Employers should prepare for the 2026 jump, but after that, any increases would require new legislative or ballot action.

Why This Matters for Missouri Employers

For small and mid-sized businesses, particularly those with limited HR infrastructure, this repeal may offer welcome flexibility. But the timing is tricky.

The law was only in effect for a few short months, and now employers have to unwind changes—without much state guidance to go on.

If your company adjusted its policies to comply with the law, it’s critical to:

  • Document any changes made since May 1.

  • Determine how to handle accrued but unused sick leave.

  • Communicate with employees about what’s changing—and why.

  • Review your PTO policy to ensure clarity and consistency going forward.

It’s also worth watching for potential future changes. Activists are already pushing to revive paid sick leave through a state constitutional amendment, possibly landing on the 2026 ballot.

So while this repeal is significant, it may not be the end of the conversation.

RELATED: Paid Sick Leave Laws - What Employers Need to Know in 2025 >>

A Quick Checklist for Employers

As the August 28 repeal date approaches, HR leaders should take these proactive steps to ensure a smooth transition:

Task Why It Matters
Review all leave policy changes made since May 1 Identify what was tied to Prop A compliance
Decide how to treat accrued leave Avoid employee confusion or legal risk
Update PTO policies, if needed Provide clarity going forward
Notify employees in writing Build trust and maintain transparency
Consult legal counsel Ensure you're on solid ground during the transition

Final Thoughts

Missouri’s repeal of its short-lived paid sick leave law is a powerful reminder of how quickly employment legislation can shift—and how important it is for HR and business leaders to remain agile. If your company adjusted policies to meet the May 2025 requirements, now is the time to re-evaluate and chart a clear path forward.

If you're an Axcet client, you're not in this alone. Our certified HR consultants are already tracking these developments and will help you navigate every step of the transition, from reviewing your current policies to communicating updates with your team. Please don’t hesitate to reach out to your dedicated Axcet HR consultant with any questions or concerns.

And if you're not yet working with Axcet, this moment highlights the value of having an experienced HR partner in your corner. We’d be happy to help your business stay compliant and confident—no matter how the laws change. Learn more about our certified PEO services or schedule a consultation today >>