HOUSE COMMITTEE BILL NO. 1
AN ACT
To repeal sections 290.502, 290.600, 290.603, 290.606, and 290.612, RSMo, and to enact in lieu thereof five new sections relating to employee compensation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:
Section A. Sections 290.502, 290.600, 290.603, 290.606, and
2 290.612, RSMo, are repealed and five new sections enacted in lieu
3 thereof, to be known as sections 290.502, 290.600, 290.603,
4 290.606, and 290.612, to read as follows:
290.502. 1. Except as may be otherwise provided pursuant to
2 sections 290.500 to 290.530, effective January 1, 2007, every
3 employer shall pay to each employee wages at the rate of $6.50 per
4 hour, or wages at the same rate or rates set under the provisions
5 of federal law as the prevailing federal minimum wage applicable to
6 those covered jobs in interstate commerce, whichever rate per hour
7 is higher.
8 2. The minimum wage shall be increased or decreased on
9 January 1, 2008, and on January 1 of successive years, by the
10 increase or decrease in the cost of living. On September 30, 2007,
11 and on each September 30 of each successive year, the director
12 shall measure the increase or decrease in the cost of living by the
13 percentage increase or decrease as of the preceding July over the
14 level as of July of the immediately preceding year of the Consumer
15 Price Index for Urban Wage Earners and Clerical Workers (CPI-W) or
16 successor index as published by the U.S. Department of Labor or its
1 17 successor agency, with the amount of the minimum wage increase or
18 decrease rounded to the nearest five cents.
19 3. Except as may be otherwise provided pursuant to sections
20 290.500 to 290.530, and notwithstanding subsection 1 of this
21 section, effective January 1, 2025, every employer shall pay to
22 each employee wages at the rate of not less than $13.75 per hour,
23 or wages at the same rate or rates set under the provisions of
24 federal law as the prevailing federal minimum wage applicable to
25 those covered jobs in interstate commerce, whichever rate per hour
26 is higher. Thereafter, the minimum wage established by this
27 subsection shall be increased by $1.25 per hour, to $15.00 per
28 hour, effective January 1, 2026. Thereafter, the minimum wage
29 established by this subsection shall be increased or decreased on
30 January 1, 2027, and on January 1 of successive years, per the
31 method set forth in subsection 2 of this section. If at any time
32 the federal minimum wage rate is above or is thereafter increased
33 above the minimum wage then in effect under this subsection, the
34 minimum wage required by this subsection shall continue to be
35 increased pursuant to this subsection, but the higher federal rate
36 shall immediately become the minimum wage required by this
37 subsection and shall be increased or decreased per the method set
38 forth in subsection 2 for so long as it remains higher than the
39 state minimum wage required and increased pursuant to this
40 subsection.
41 4. For purposes of this section, the term "public employer"
42 means an employer that is the state or a political subdivision of
43 the state, including a department, agency, officer, bureau,
2 44 division, board, commission, or instrumentality of the state, or a
45 city, county, town, village, school district, or other political
46 subdivision of the state. [Subsection 3 of this section] Beginning
47 on the effective date of this section, the provisions of this
48 section shall [not] apply to a public employer with respect to its
49 employees. [Any public employer that is subject to subsections 1
50 and 2 of this section shall continue to be subject to those
51 subsections.]
290.600. As used in sections 290.600 through 290.642:
2 (1) "Department", department of labor and industrial
3 relations;
4 (2) "Director", director of the department of labor and
5 industrial relations;
6 (3) "Domestic violence", as such term is defined in section
7 455.010;
8 (4) "Earned paid sick time", time that is compensated at the
9 same hourly rate and with the same benefits, including health care
10 benefits, as the employee normally earns during hours worked and is
11 provided by an employer to an employee for the purposes described
12 in section 290.606, but in no case shall this hourly amount be less
13 than that provided under section 290.502;
14 (5) "Employee", any individual employed in this state by an
15 employer, but does not include:
16 (a) Any individual engaged in the activities of an
17 educational, charitable, religious, or nonprofit organization
18 where the employer-employee relationship does not, in fact, exist
19 or where the services rendered to the organization are on a
3 20 voluntary basis;
21 (b) Any individual standing in loco parentis to foster
22 children in their care;
23 (c) Any individual employed for less than four months in any
24 year in a resident or day camp for children or youth, or any
25 individual employed by an educational conference center operated
26 by an educational, charitable or not-for-profit organization;
27 (d) Any individual engaged in the activities of an
28 educational organization where employment by the organization is
29 in lieu of the requirement that the individual pay the cost of
30 tuition, housing or other educational fees of the organization or
31 where earnings of the individual employed by the organization are
32 credited toward the payment of the cost of tuition, housing or
33 other educational fees of the organization;
34 (e) Any individual employed on or about a private residence
35 on an occasional basis for six hours or less on each occasion;
36 (f) Any individual employed on a casual basis to provide
37 baby-sitting services;
38 (g) Any individual employed by an employer subject to the
39 provisions of Part A of Subtitle IV of Title 49, United States
40 Code, 49 U.S.C. §§ 10101 et seq.;
41 (h) Any individual employed on a casual or intermittent basis
42 as a golf caddy, newsboy, or in a similar occupation;
43 (i) Any individual who is employed in any government position
44 defined in 29 U.S.C. §§ 203(e)(2)(C)(i)-(ii);
45 (j) Any individual employed by a retail or service business
46 whose annual gross volume sales made or business done is less than
4 47 five hundred thousand dollars;
48 (k) Any individual who is an offender, as defined in section
49 217.010, who is incarcerated in any correctional facility operated
50 by the department of corrections, including offenders who provide
51 labor or services on the grounds of such correctional facility
52 pursuant to section 217.550; [or,]
53 (l) Any individual described by the provisions of section 29
54 U.S.C. 213(a)(8);
55 (m) Any individual employed by a seasonal employer as defined
56 under this section;
57 (n) Any individual who is an employee of an employer engaged
58 in the operation of a vessel that is documented by the United
59 States under 46 U.S.C. Section 12105;
60 (o) Any individual who is the owner, as defined under section
61 301.010, and operator of a motor vehicle which is leased or
62 contracted with a driver to a for-hire motor carrier operating
63 within a commercial zone as defined under section 390.020 or
64 390.041, or operating under a certificate issued by the Missouri
65 department of transportation or by the United States Department of
66 Transportation, or any of its subagencies; or
67 (p) Any individual who is a commercial over-the-road (OTR) or
68 long-haul truck driver or an individual over whom the Secretary of
69 Transportation has power to establish qualifications and maximum
70 hours of service under the provisions of 49 U.S.C. Section 31502;
71 (6) "Employer", any person acting directly or indirectly in
72 the interest of an employer in relation to an employee and
73 employing one hundred or more full-time employees; provided,
5 74 however, that for the purposes of sections 290.600 through 290.642
75 "employer" does not include the United States government, the
76 state, or a political subdivision of the state, including a
77 department, agency, officer, bureau, division, board, commission,
78 or instrumentality of the state, or a city, county, town, village,
79 school district, public higher education institution, or other
80 political subdivision of the state;
81 (7) "Family member", [any of the following individuals:
82 (a)] regardless of age, a biological, adopted or foster
83 child, stepchild or legal ward, a child of a domestic partner, a
84 child to whom the employee stands in loco parentis, or an
85 individual to whom the employee stood in loco parentis when the
86 individual was a minor;
87 [(b) A biological, foster, stepparent or adoptive parent or
88 legal guardian of an employee or an employee's spouse or domestic
89 partner or an individual who stood in loco parentis when the
90 employee or employee's spouse or domestic partner was a minor
91 child;
92 (c) An individual to whom the employee is legally married
93 under the laws of any state, or a domestic partner who is
94 registered as such under the laws of any state or political
95 subdivision, or an individual with whom the employee is in a
96 continuing social relationship of a romantic or intimate nature;
97 (d) A grandparent, grandchild, or sibling (whether of a
98 biological, foster, adoptive or step relationship) of the employee
99 or the employee's spouse or domestic partner; or
100 (e) A person for whom the employee is responsible for
6 101 providing or arranging health or safety-related care, including
102 but not limited to helping that individual obtain diagnostic,
103 preventative, routine, or therapeutic health treatment or ensuring
104 the person is safe following domestic violence, sexual assault, or
105 stalking;]
106 (8) "Health care professional", any individual licensed
107 under federal or any state law to provide medical or emergency
108 services, including but not limited to doctors, nurses, certified
109 nurse midwives, mental health professionals, and emergency room
110 personnel;
111 (9) "Person", any individual, partnership, association,
112 corporation, business, business trust, legal representative, or
113 any organized group of persons;
114 (10) "Retaliatory personnel action", denial of any right
115 guaranteed under sections 290.600 through 290.642, or any threat,
116 discharge, suspension, demotion, reduction of hours, or any other
117 adverse action against an employee for the exercise of any right
118 guaranteed herein. "Retaliatory personnel action" shall also
119 include interference with or punishment for in any manner
120 participating in or assisting an investigation, proceeding, or
121 hearing under sections 290.600 through 290.642;
122 (11) "Same hourly rate", means the following:
123 (a) For employees paid on the basis of a single hourly rate,
124 the same hourly rate shall be the employee's regular hourly rate;
125 (b) For employees who are paid multiple hourly rates of pay
126 from the same employer, the same hourly rate shall be either:
127 a. The wages the employee would have been paid for the hours
7 128 absent during use of earned paid sick time if the employee had
129 worked; or,
130 b. The weighted average of all hourly rates of pay during the
131 previous pay period.
132
133 Whatever method the employer uses, the employer must use a
134 consistent method for each employee throughout a year;
135 [(c) For employees who are paid a salary, the same hourly
136 rate shall be determined by dividing the wages the employee earns
137 in the previous pay period by the total number of hours worked
138 during the previous pay period. For determining total number of
139 hours worked during the previous pay period, employees who are
140 exempt from overtime requirements under 29 U.S.C. § 213(a)(1), the
141 Fair Labor Standards Act, shall be assumed to work forty hours in
142 each work week unless their normal work week is less than forty
143 hours, in which case earned paid sick time shall accrue and the
144 same hourly rate shall be calculated based on the employee's normal
145 work week. Regardless of the basis used, the same hourly rate
146 shall not be less than the effective minimum wage specified in
147 section 290.502;
148 (d) For employees paid on a piece rate or a fee-for-service
149 basis, the same hourly rate shall be a reasonable calculation of
150 the wages or fees the employee would have received for the piece
151 work, service, or part thereof, if the employee had worked.
152 Regardless of the basis used, the same hourly rate shall not be
153 less than the effective minimum wage specified in section 290.502;
154 (e) For employees who are paid on a commission basis (whether
8 155 base wage plus commission or commission only), the same hourly rate
156 shall be the greater of the base wage or the effective minimum wage
157 specified in section 290.502;
158 (f)] (c) For employees who receive and retain compensation in
159 the form of gratuities in addition to wages, the same hourly rate
160 shall be the greater of the employee's regular hourly rate or one
161 hundred percent of the effective minimum wage specified in section
162 290.502 without deduction of any tips as a credit;
163 (12) "Seasonal employer", an employer whose operations and
164 business are substantially all in an industry in which it is
165 customary to operate, because of climatic conditions or because of
166 the seasonal nature of such industry, only during a regularly
167 recurring seasonal period or periods totaling twenty-six weeks or
168 less in a fifty-two week period, as determined by the department;
169 (13) "Sexual assault", as such term is defined in section
170 455.010;
171 [(13)] (14) "Stalking", as such term is defined in section
172 455.010;
173 [(14)] (15) "Year", a regular and consecutive twelve-month
174 period as determined by the employer; except that for the purposes
175 of section 290.615 and section 290.627, "year" shall mean a
176 calendar year.
290.603. 1. [Employees of an employer with fifteen or more
2 employees shall accrue a minimum of one hour of earned paid sick
3 time for every thirty hours worked, but such employees shall not be
4 entitled to use more than fifty-six hours of earned paid sick time
5 per year, unless the employer selects a higher limit.
9 6 2.] Employees of an employer with [fewer than fifteen] one
7 hundred or more employees shall accrue a minimum of one hour of
8 earned paid sick time for every [thirty] forty hours worked, but
9 such employees shall not be entitled to use more than forty hours
10 of earned paid sick time per year, unless the employer selects a
11 higher limit.
12 [3.] 2. In determining the number of employees of an
13 employer, all employees performing work in the state for an
14 employer for compensation on a full-time[, part-time, or
15 temporary] basis shall be counted, to be determined by the number
16 of full-time employees included in the employer's most recent tax
17 filing and modified as provided herein. In situations in which the
18 number of employees performing work in the state for an employer
19 for compensation per week fluctuates above and below [fifteen] one
20 hundred employees per week over the course of a year, an employer
21 is required to provide earned paid sick time pursuant to subsection
22 1 of this section if it maintained [fifteen] one hundred or more
23 employees in the state on the payroll for some portion of a working
24 day in each of twenty or more different calendar weeks, including
25 any periods of leave, and whether or not the weeks were
26 consecutive, in either the current or the preceding year
27 (irrespective of whether the same individuals were in employment
28 in each working day).
29 [4.] 3. All employees shall accrue earned paid sick time as
30 follows:
31 (1) Earned paid sick time as provided in this section shall
32 begin to accrue at the commencement of employment or May 1, 2025,
10 33 whichever is later. An employee shall be entitled to use earned
34 paid sick time as it is accrued. An employer may provide all
35 earned paid sick time that an employee is expected to accrue in a
36 year at the beginning of the year;
37 (2) Employees who are exempt from overtime requirements
38 under 29 U.S.C. § 213(a)(1) of the Federal Fair Labor Standards Act
39 will be assumed to work forty hours in each work week for purposes
40 of earned paid sick time accrual unless their normal work week is
41 less than forty hours, in which case earned paid sick time accrues
42 based upon that normal work week;
43 (3) [Up to eighty hours of] Earned paid sick time shall not
44 be required to be carried over to the following year if the
45 employee has any unused accrued earned paid sick time at the end of
46 the year[, but]. This law does not require an employer to permit
47 an employee to use more than the applicable number of hours of
48 earned paid sick time per year as set forth in subsections 1 and 2
49 of this section. [Alternatively, in lieu of] An employer may allow
50 carryover of unused earned paid sick time from one year to the next
51 at its discretion, and an employer at its discretion may pay an
52 employee for unused earned paid sick time at the end of a year
53 which could be carried over and provide the employee with an amount
54 of paid sick time that meets or exceeds the requirements of
5