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AZ paid sick leave provisions effective July 1

paid sick leave, Prop 206, Arizona, businessA big change is happening for ALL Arizona employers in just a couple of days. On November 8th, 2016, Arizona voters passed Proposition 206, The Fair Wages and Healthy Families Act. While the minimum wage portion of this proposition got most of the attention, another far-reaching provision affecting most ALL employers will go into effect starting July 1st, 2017. The paid sick leave provisions must be offered even to part-time employees and by employers big and small.

Starting July 1st, all employees will accrue paid sick leave at a rate of one hour of paid leave for every 30 hours worked. For employers with 15 or more employees, employees must accrue up to 40 hours per year under the Act. For employers with fewer than 15 employees, the accrual rate is 24 hours per year. It’s important to note that employers may choose to provide employees with additional paid time off (PTO) to meet this main provision of this act. Some may already have adequate PTO policies in place to meet this provision, while others may not.

There are many other provisions and rules which are important for Arizona employers to understand. And some questions and employer situations have yet to be addressed. The Industrial Commission of Arizona (ICA) has been tasked with crafting interpretive regulations and/or guidance. They have already come up with a limited set of proposed regulations which are subject to review and approval by the state attorney general or the Governor’s Regulatory Review Council. Go to www.azica.gov for more information.

For a list of FAQs about this law, click here.

Dale F. Jensen, CPA