Missouri HB2366: The 10X Wage Penalty Auto Shops Need to Know

Most Missouri auto service owners have never heard of the financial exposure buried in HB2366. But if the state Attorney General believes your shop employed an unauthorized worker, you could face a lawsuit seeking damages equal to ten times all wages paid to that worker—for the entire period of employment.

For a small business, that math can be devastating.

What HB2366 Actually Does

HB2366, titled "Modifies provisions relating to employment of unauthorized aliens," became effective upon enactment during the 103rd General Assembly's Second Regular Session in 2026. The law tightens Missouri's existing prohibition on hiring workers without legal authorization to work in the United States.

The provision that matters most to auto service owners is found in §285.535, subsection 4, on page 6 of the bill. It gives the Missouri Attorney General the power to sue any business the AG believes has violated the unauthorized worker employment ban. If the AG wins—or if the business settles—the damages are calculated as ten times the total wages paid to the unauthorized worker(s) during the violation period.

No sunset date is specified, meaning this liability exists indefinitely.

Why This Matters to Your Shop

Auto service businesses, like many trades, rely on a diverse workforce. Verification processes exist—the federal I-9 form, E-Verify—but they are not foolproof. A worker can present documents that appear legitimate. Years later, if those documents are discovered to be fraudulent, your shop faces exposure.

Consider a concrete example: A technician earning $45,000 per year works at your shop for five years before an issue surfaces. Under HB2366, the potential damages liability would be $2.25 million (10 × $450,000 in total wages)—regardless of whether you knowingly hired the worker or were deceived by forged documents.

For a small shop with annual revenue under $1 million, that single lawsuit could force closure.

What You Should Do Now

This is not legal advice, but practical steps include:

• Audit your I-9 compliance. Ensure all hiring paperwork is complete and properly retained.
• Use E-Verify consistently. While not a complete shield, it creates a documented good-faith effort to verify work authorization.
• Train hiring staff. Make sure anyone involved in recruitment understands the stakes.
• Review your insurance. Ask your broker whether employment practices liability or other policies provide any coverage for this exposure.
• Consult employment counsel. An attorney familiar with Missouri employment law can review your current practices and identify gaps.

HB2366 is now law. The 10x wage damages provision is real, has no sunset, and applies to any business found in violation. For auto service owners, understanding this exposure is the first step toward protecting your business.

Source: HB2366, 103rd General Assembly, Second Regular Session, 2026; §285.535, subsection 4.