A little-known provision in Missouri's HB2366 creates a potential business-ending financial penalty for auto service shops that knowingly hire unauthorized workers.
Most Missouri auto service owners haven't heard about a provision buried in HB2366 that could expose their business to a state lawsuit seeking damages equal to 10 times the total wages paid to any unauthorized worker they knowingly employed. That multiplier—10×—isn't a fine or a fee. It's a civil judgment the Missouri Attorney General can pursue directly against your business.
Under §285.535, subsection 4 of HB2366, if the Attorney General has reason to believe a business knowingly employed an unauthorized alien, the state can file a civil action seeking a monetary judgment. That judgment equals 10 times the total wages paid to the unauthorized worker during the period of the violation.
Here's why that matters: if a shop unknowingly hired someone without authorization and paid them $40,000 over two years before discovering the issue, the potential state judgment would be $400,000—on top of any other penalties.
The law targets businesses that knowingly hire unauthorized workers. That's an important word. A shop that makes a good-faith effort to verify employment eligibility through E-Verify or I-9 documentation is taking the steps the law expects. But if an owner or manager knowingly hires someone without proper work authorization, or deliberately ignores red flags, the 10× penalty becomes a real exposure.
For auto service businesses—which often employ technicians, service advisors, and support staff—payroll verification is now a direct business risk, not just a compliance box to check.
The 10× wage judgment is one layer of penalty. HB2366 also allows the state to suspend or revoke a business license and bar the business from state contracts. A single hiring mistake—or worse, a pattern of knowing violations—can stack multiple consequences: the wage multiplier judgment, license suspension, and contract debarment.
For a service business that depends on steady revenue and reputation, any one of these can be serious. Combined, they can be fatal.
HB2366 became effective upon enactment during the 103rd General Assembly's Second Regular Session in 2026. There is no delayed effective date. The provision is law now.
Review your hiring and employment verification process. Make sure your team is using E-Verify or equivalent verification tools consistently. Document your good-faith compliance efforts. If you use a payroll service or HR partner, confirm they're handling employment eligibility verification. And if you discover a compliance gap, consult an employment attorney about your options—addressing it proactively is far better than waiting for a state investigation.
The 10× wage multiplier is designed to deter knowing violations. But it also means that employment verification isn't optional for Missouri auto service owners anymore—it's a direct financial risk.
For a free, detailed breakdown of HB2366's employment provisions and what they mean for your shop, contact your local trade association or employment counsel.