This alert provides a summary of state-run programs that are set to begin soon in Alaska and Missouri.
Summary
A new paid sick leave law is set to begin in the state of Alaska on July 1, 2025. Alaska Ballot Measure No. 1 was voted for in favor in early November of 2024. Once certified by the state, the law will apply to all employers in Alaska, with differing standards applying to those employers with less than 15 employees.
When employment begins or on July 1, 2025 – whichever is later – employees must accrue one hour of paid sick leave for every 30 hours worked. The proposed law assumes that overtime-exempt executive, administrative, professional, and outside sales employees work a 40-hour-per-week schedule, but if their typical workweek involves fewer than 40 hours they accrue leave according to their normal schedule.
Employers with less than 15 employees will be able to cap the annual accrual at 40 hours, and employers with 15 or more employees will be able to cap the annual accrual at 56 hours. The proposed law mandates that all unused leave carry over from year to year (with no designated carryover cap). There is no mention concerning whether, and in what amount, employers can cap overall accrual. However, the proposed law does allow employers with less than 15 employees to limit annual use to 40 hours, and employers with 15 or more employees to limit annual use to 56 hours.
Employers with a paid leave policy, such as a PTO policy, that make available an amount of paid leave sufficient to meet the proposed law’s requirements that employees may use for the same purposes and under the same conditions as the proposed law requires need not provide additional paid sick leave.
The proposed law does not address the rate at which employees must be paid, or when they must be paid, when using paid sick leave.
Summary
A new paid sick & safe time leave law is set to begin in the state of Missouri on May 1, 2025. Proposition A was voted for in favor in early November of 2024. Once certified by the state, the law will apply to all employers in Missouri, with differing standards applying to those employers with less than 15 employees in Missouri.
When employment begins or on May 1, 2025 – whichever is later – employees must accrue one hour of paid sick time for every 30 hours worked . The proposed law assumes that overtime-exempt executive, administrative, professional, and outside sales employees work a 40-hour-per-week schedule, but if their typical workweek involves fewer than 40 hours they accrue leave according to their normal schedule.
There is no mention concerning whether employers can cap annual or overall accrual. However, the proposed law does allow those employers with less than 15 employees in Missouri to limit annual use to 40 hours, and other employers can limit annual use to 56 hours. It also allows employers to limit carryover from year to year to 80 hours.
Employers with a paid leave policy, such as a PTO policy, who make available an amount of paid leave sufficient to meet the proposed law’s requirements that employees may use for the same purposes and under the same conditions as the proposed law requires need not provide additional paid sick time.
When employees use leave, they must be paid their same hourly rate, with the same benefits – including health care benefits – that the employee typical earns, which cannot be less than the state minimum wage. For hourly employees, this is their hourly rate. For salaried employees – exempt or nonexempt – employers must divide wages they earned in the previous pay period by hours worked in that previous pay period. Although the proposed law contains numerous provisions concerning how employees must be paid, it does not mention when they must be paid when they use leave.
Vialto can assist you in complying with your responsibilities related to state paid leave programs, including determining which employees are covered under the program, assisting with any required registrations, calculating employee and employer contribution amounts, drafting employee communications, and assisting with wage reporting.
Please reach out directly to your Vialto contact or one of the individuals listed below to discuss.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Tina Schrob
Partner
Gregory Fetter
Partner
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