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Sick Leave Employment Laws Take Effect in Arizona.

Jul 18, 2017 11:04:57 AM

If you are a business owner in Arizona, it’s time to start putting a plan in place for compliance with Arizona’s new paid sick leave law. 

Last November, Arizona voters approved Proposition 206, which increases Arizona’s minimum wage to $10.00 per hour and requires Arizona employers to provide paid sick time to all employees.

By July 1, 2017, all businesses with employees in the State of Arizona must be in compliance, including augmenting payroll practices to ensure complete and accurate reporting of accrued sick leave on pay stubs, preparation of required notices to employees, and updating policies and procedures.

Arizona joins just six other states and the District of Columbia in mandating paid sick leave, according to an analysis by the ERISA Industry Committee, a national group that advocates on behalf of large employers on public policies dealing with health care, retirement and compensation. There's no such requirement at the national level.

What's the new law about? Virtually all employers, with few exceptions, will have to offer paid, sick leave to their workers. That includes full-time, part-time, temporary and seasonal workers.   The only exceptions are sole proprietors and state and federal employees, most of whom already receive paid time off, and sole proprietors. But for businesses with at least one other employee, the new law applies. The new law takes effect July 1 and affects nearly everyone in the state's workforce. Here's what businesses and their staffs should know about it.

How much paid leave is required? That depends on how many employees a business or non-profit has. Those with 15 or more workers must provide at least 40 hours of paid time off annually. Those with fewer than 15 employees must provide a minimum of 24 hours per year. The accrual rate is one hour of paid sick leave for every 30 hours worked, until the minimums are reached. It starts to accrue on the day of hire.

The employee may use the accrued sick time as she or he earns it.  Alternately, employers may provide all earned paid sick leave that an employee is expected to accrue within the year at the beginning of that year.

The Industrial Commission of Arizona is tasked with enforcing the law and providing guidance.

There are many more elements to consider. For complete details go to Industrial Commission of Arizona  

What is your knowledge level on this issue? Are you prepared?   Call us if have any questions.

About Proliant

Proliant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.

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