A little-noticed provision in Missouri's new employment law could expose auto service businesses to penalties ten times larger than wages paid—even in disputed cases.
Most Missouri auto service owners haven't heard of the damages provision buried in HB2366. That's a problem, because it changes the financial stakes of hiring decisions in a way that could affect your business.
Under §285.535, subsection 4 of HB2366 (effective upon enactment in 2026), Missouri's Attorney General gains the power to sue a business for monetary damages if the AG believes the business knowingly employed unauthorized aliens. The damages aren't limited to back wages or fines. Instead, the law allows the AG to recover an amount equal to ten times all wages paid to those workers during the violation period.
To put this plainly: if a shop unknowingly hired a worker for two years and paid $60,000 in wages, and the state later alleges the hiring was knowing, the potential exposure isn't $60,000—it's $600,000.
Auto service shops, like many trades, rely on hiring workers quickly and often depend on applicants to provide accurate documentation. The 10X multiplier creates a different risk calculus than traditional employment law penalties.
Here's the practical concern: the law hinges on whether hiring was "knowing." That word is critical but also legally slippery. A shop owner who hires someone with what appears to be valid identification, or who relies on an employment verification service, may still face an AG lawsuit claiming the violation was "knowing." Even if you ultimately win the dispute, defending that lawsuit is expensive. The multiplier penalty—if the state prevails—could be large enough to force a settlement on facts you dispute.
This isn't a theoretical risk. The provision creates a tool the AG can use to pursue cases that might not be economically viable under traditional penalty structures.
First, understand that this law applies to your hiring practices starting in 2026. There is no sunset date—this is permanent law.
Second, document your hiring process. If you use E-Verify, keep records. If you request I-9 documentation, retain it. If you use a third-party employment verification service, maintain proof. The goal isn't to avoid hiring—it's to demonstrate that any hiring decision was made in good faith, not knowingly.
Third, consider whether your current hiring procedures and document retention practices would hold up if an AG investigator asked questions. Many shops don't keep organized hiring files. That gap becomes a liability under this law.
Finally, this is a good time to review your employment practices with someone who understands both Missouri employment law and the specific language of §285.535, subsection 4. The stakes are higher than they were before.
This explainer is based on HB2366, 103rd General Assembly, Second Regular Session, 2026, §285.535, subsection 4, Page 6 (lines 135–140). For a detailed, business-specific summary tailored to your shop's hiring practices, speak with an employment law advisor in your area.