Ballot box ballyhoo: Four benefits-related initiatives to watch 

At this time of year, you can almost hear a pin drop in practically all statehouses. This does not mean the end of significant benefits law changes. Voters in four states will have the opportunity on Nov. 5 to play the role of legislators. Ballots will include paid sick and safe leave mandates in Alaska, Missouri and Nebraska. Washington voters could make a major change to the WA Cares long-term services and supports mandate.

All four states require a simple majority of votes cast for approval. In addition, Nebraska requires at least 35% of all voters (including those who leave their ballot blank on the initiative) to approve the measure. Here is a summary of what is at stake:

Alaska

Ballot Measure No. 1 would require paid sick and safe leave and modify the state’s minimum wage:

• Paid sick and safe leave. Effective July 1, 2025, most employers (except state and local governments) would have to provide at least one hour of paid sick and safe leave for every 30 hours worked. The annual cap would be 56 hours per year (for employers with 15 or more employees) and 40 hours per year (for employers with fewer than 15 employees). Carryover of unused accrued paid sick and safe leave is required, but employees may not use more than the annual allotment. Qualifying reasons would include employees’ mental or physical illness, injury or health condition, care for family members and circumstances related to domestic violence, sexual assault or stalking.
• Minimum wage. The minimum wage (currently $11.73 per hour) would increase to $13.00 per hour (effective July 1, 2025) and increase by a dollar per year over the next two years. Increases in 2028 and later years would be based on the Consumer Price Index for Anchorage.

Missouri

The Minimum Wage and Earned Paid Sick Time Initiative (Proposition A) would implement a new paid sick and safe leave requirement and change the state’s minimum wage:

• Paid sick and safe leave. Effective May 1, 2025, all employers (except federal, state and local governments) would have to provide at least one hour of paid sick and safe leave for every 30 hours worked. The annual cap would be 56 hours per year (for employers with 15 or more employees in the state) and 40 hours per year (for employers with fewer than 15 employees in the state). Employees would be able to carry over up to 80 hours per year, but employers would be able to limit the number of hours used to 56 (or 40) hours. Alternatively, employers may pay employees for unused paid sick time at the end of each year and front-load the applicable amount for the next year. Qualifying reasons would include employees’ mental or physical illness, injury or health condition, care for family members, school and business closures due to public health emergencies and circumstances related to domestic violence, sexual assault or stalking.
• Minimum wage. The minimum wage (currently $12.30 per hour) would increase to $13.75 per hour (effective Jan. 1, 2025) and $15.00 per hour (effective Jan. 1, 2026). Increases in later years would take effect on Jan. 1, based on the CPI for Urban Wage Earners and Clerical Workers.

Nebraska

Effective Oct. 1, 2025, the paid sick leave initiative would provide similar accruals and employer exclusions as Alaska and Missouri (one hour of paid sick and safe leave for every 30 hours worked, up to 40 hours per year for employers with fewer than 20 employees, and up to 56 hours per year for larger employers). Like Alaska, there would be no carryover cap, but in lieu of a carryover employers could pay employees for unused paid sick time at the end of each year and front-load the applicable amount for the next year. Qualifying reasons would include employees’ mental or physical illness, injury or health condition, sickness, care for family members and school and business closures due to public health emergencies.

Washington

The Opt-Out of Long-Term Services Insurance Program Initiative (Initiative Measure No. 2124) would allow employees and self-employed individuals to opt out of the WA Cares Long-Term Services and Support program at any time. Currently, employees without an exemption must contribute 0.58% from each paycheck to WA Cares, which funds up to $36,500 (indexed for inflation) in long-term care coverage starting in 2026. If approved, the opt-out right would appear to take immediate effect. A December 2023 Milliman report predicted that turning WA Cares into a voluntary program would require significantly higher premiums and “could lead to an insurance premium rate spiral.”

Forecast is partly cloudy

It is challenging to predict the outcome of these initiatives. Paid leave would appear to be popular among voters. The Washington proposal’s prospects are harder to handicap, given that it might mean the practical end of a retirement benefit for state residents.