COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0785H.01I Bill No.:HB 758 Subject:Employees - Employers; Labor and Management; Department of Labor and
Industrial Relations; Salaries
Type:Original Date:February 4, 2025Bill Summary:This proposal modifies provisions relating to employee compensation,
repealing the minimum wage cost of living adjustment and modifying paid
sick leave provisions.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue
Fund*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on General
Revenue$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*Oversight notes DOLIR assumes the proposal would potentially allow for an increase in
minimum wage complaints necessitating additional regulatory auditors; however, DOLIR
assumes the costs would be below the $250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0785H.01I
Bill No. HB 758
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February 4, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028General Revenue 0 to Unknown0 to Unknown0 to UnknownTotal Estimated Net
Effect on FTE0 to Unknown0 to Unknown0 to Unknown
*Oversight notes DOLIR assumes the proposal would potentially allow for an increase in
minimum wage complaints necessitating additional regulatory auditors.
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0785H.01I
Bill No. HB 758
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Labor and Industrial Relations (DOLIR) assume that
public employers are covered by Missouri's minimum wage law. It is unknown how many
disputes between public employers and their employees are not currently filed with the Division
of Labor Standards. Depending upon the increased volume of complaints which would be
investigated, the impact could be significant to the Wage and Hour Division. It is likely that
additional regulatory auditors would be required to cover the additional caseload for the addition
of Section 290.502.4 but as the additional volume is unknown but could be quite significant.
Upon further inquiry, DOLIR notes the proposal increases the class of positions covered by
minimum wage law by about 380,300 (according to MERIC’s most recent monthly CES
statistics on the number of state and local government employees), that will result in a sizeable
increase in the number of potential complaints received. However, as the bill increases the
annual gross revenue exemption to $10 million, that’s going to also cut down the overall number
of eligible employers by a good deal and mitigate that. DOLIR is not sure of how much money
will be needed to comply with the requirements of the proposal, but DOLIR is reasonably
confident it will be under $250,000.
Oversight notes DOLIR assumes the proposal would potentially allow for an increase in
minimum wage complaints necessitating additional regulatory auditors; however, DOLIR
assumes the costs would be below $250,000 threshold.
Oversight notes DOLIR assumes it will potentially require more regulatory auditors to handle
the incoming volume of complaints related to the minimum wage proposal.
Overnight is not sure how many employees in Missouri would be potentially excluded from the
minimum wage law rule, under the proposal. Therefore, Oversight will range the unknown costs
for DOLIR’s FTE from zero (there were not enough complaints to justify the additional FTE for
the Wage and Hour Division) to unknown negative cost (there were enough complaints to the
Wage and Hour Division to justify the increase in FTE costs).
Officials from the Office of Administration (OA) assume the proposal will have no fiscal
impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note for this agency.
Officials from the Office of Attorney General (AGO)
arising from this proposal can be absorbed with existing resources. The AGO may seek
additional appropriations if the proposal results in a significant increase in litigation or
investigation costs. L.R. No. 0785H.01I
Bill No. HB 758
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Oversight does not have any information to the contrary. Therefore, Oversight assumes the
AGO will be able to perform any additional duties required by this proposal with current staff
and resources and will reflect no fiscal impact to the AGO for fiscal note purposes.
Officials from the Department of Commerce and Insurance (DCI), the Department of
Health and Senior Services, the Department of Mental Health, the Department of
Corrections, the Office of the Governor, defer to the OA
for the potential fiscal impact of this proposal.
Officials from the Department of Economic DevelopmentDepartment of Elementary
and Secondary Education, the Department of Higher Education and Workforce
Development, the Department of Natural Resources, the Department of Revenue, the
Department of Public Safety (Office of the Director Capitol Police, Alcohol & Tobacco
Control, Fire Safety, Gaming Commission, Missouri Highway Patrol, State Emergency
Management Agency and Veterans Commission), the Missouri National Guard, the Joint
Committee on Administrative Rules, the Joint Committee on Public Employee Retirement,
the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan, the
Missouri Department of Conservation, the Missouri Ethics Commission, the Missouri
House of Representatives, the Department of Transportation, the -
Administrative Hearing Commission, the Office of the State Courts Administrator, the
Office of the State Auditor, the Missouri Senate, the Office of the Secretary of State the
Office of the State Public Defender, the Office of the State Treasurer State Tax
Commission each assume the proposal will have no fiscal impact on their respective
organizations for this proposal.
Officials from the Missouri University System, the Northwest Missouri State University
the University of Central Missouri each assume the proposal will have no fiscal impact on their
organization. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect a zero impact in the fiscal note.
Officials from the City of Kansas City (CKC) assume the proposal will have no fiscal impact
on their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for CKC.
Oversight notes that the above-mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note. L.R. No. 0785H.01I
Bill No. HB 758
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts – DOLIR – Additional FTE
(Wage and Hour Regulatory Auditor)
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Estimated Net FTE Change on General
Revenue0 to Uknown0 to Uknown0 to Uknown
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to small businesses would be expected as a result as some Missouri
businesses will have to comply with the proposal.
FISCAL DESCRIPTION
This bill repeals the current language relating to the increase or decrease of the minimum wage
based upon the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Under this bill, the minimum wage required by Section 290.502, RSMo, will not apply to any
employee who is under 20 years of age. This exemption from the minimum wage requirements
applies only to employment compensation paid or accrued on or after the effective date of of this
bill and does not apply retroactively.
Employers who employ employees under the age of 20 years are required to comply with other
applicable provisions of the Minimum Wage Law, sections 290.500 to 290.530.
Beginning on the effective date of this bill, the minimum wage law will apply to public
employers. L.R. No. 0785H.01I
Bill No. HB 758
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Currently, the definition of "employee" to whom the provisions of the paid sick leave provisions
apply, exempts an individual employed by a retail or service business whose annual gross
volume sales made are less than $500,000. This bill excludes retail or service business whose
annual gross volume sales in the prior calendar year was less than $10 million.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General’s Office
Department of Commerce and Insurance
Department of Economic Development
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Mental Health
Department of Natural Resources
Department of Corrections
Department of Labor and Industrial Relations
Department of Revenue
Department of Public Safety
Office of the Director
Division of Alcohol and Tobacco Control
Capitol Police
Fire Safety
Missouri Gaming Commission
Missouri Highway Patrol
State Emergency Management Agency
Missouri Veterans Commission
Missouri National Guard
Department of Social Services
Office of the Governor
Joint Committee on Public Employee Retirement
Joint Committee on Administrative Rules
Missouri Lottery Commission
Legislative Research
Oversight Division
Missouri Consolidated Health Care Plan
Missouri Department of Agriculture
Missouri Department of Conservation
Missouri Ethics Commission
Missouri House of Representatives
Office of the Lieutenant Governor L.R. No. 0785H.01I
Bill No. HB 758
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Missouri Department of Transportation
Missouri State Employee's Retirement System
MoDOT & Patrol Employees’ Retirement System
Office of Administration
Administrative Hearing Commission
Facilities Management, Design and Construction
Office of the State Courts Administrator
Office of the State Auditor
Missouri Senate
Office of the Secretary of State
Office of the State Public Defender
Office of the State Treasurer
State Tax Commission
Missouri University System
Northwest Missouri State University
University of Central Missouri
City of Kansas City
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 4, 2025February 4, 2025