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U.S. News
10 December 2024

Missouri Businesses Challenge Voter-Approved Wage Law

Legal battle arises as groups seek to suspend minimum wage hike and sick leave requirements

Missouri businesses are gearing up for a legal showdown as multiple business groups have filed a lawsuit seeking to halt the implementation of a freshly ratified law aimed at increasing the state’s minimum wage and providing paid sick leave to workers. The law, endorsed by voters at the polls, is set to incrementally raise the minimum wage from $12.30 per hour to $13.75 come January 2025, eventually reaching $15 by 2026. It also mandates up to seven paid sick days annually for employees, effective starting May 2025.

The Missouri Chamber of Commerce and various associations for restaurants and grocers spearheaded the litigation, claiming the new law contravenes state constitutional stipulations, particularly the requirement for ballot measures to address only one issue at a time. They argue the inclusion of both the wage hike and sick leave policy within the same measure violates this rule.

Championing the efforts for workers’ rights, leaders from the original campaign for minimum wage increases, primarily the coalition dubbed Fight for 15, voiced their disapproval of the lawsuit. Terrence Wise, representing the group, articulated the frustration felt within the working class, emphasizing their collective decision during the elections. “It’s disheartening,” Wise expressed, “that corporations are attempting to undermine the voters’ victory, which was accomplished through fair democratic procedures.”

According to the business petition, Missouri’s Supreme Court is being asked to declare the law unconstitutional, citing alleged election irregularities and significant constitutional breaches during the electoral process. Their assertion is clear: they believe the ramifications of these violations are serious enough to warrant overturning the law entirely.

Missouri wasn't alone on the ballot this election season; numerous other states also held votes concerning minimum wage and sick leave measures. The outcomes varied widely, with Alaska passing similar initiatives, whereas voters across California rejected efforts to raise the minimum wage to $18 for most workers. Meanwhile, propositions aimed at limiting tipped workers’ minimum wage were declined in Arizona and Massachusetts.

Interestingly, Nebraskans supported requiring sick leave for many employees, albeit without any alterations to wage structures. Amidst this national patchwork of voting, the Missouri business groups contend their voters were not fully informed about the potential cost impacts the new law would bring to local governments, nor about its applicability across different job sectors.

Particularly contentious is the exemption included within the law. It specifies government workers and employees of businesses earning below $500,000 annually won’t qualify for the paid sick days entitlement. Critics from the business sectors have pointed out gaps and potential discrepancies within the ballot measure's language, arguing it may have misled voters by failing to adequately disclose these exemptions.

At the time of writing, no court hearings have yet been scheduled concerning this pivotal lawsuit, which stands to influence not only employment conditions across Missouri but also sets a potentially consequential precedent for similar initiatives nationwide.

With the law slated for implementation, businesses and workers alike are bracing for the outcomes of both the legal challenge and the law’s first phases, which are expected to redefine employment rights and reflect the growing dialogue around worker compensation and health benefits across the United States.