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AZ Sick Leave

Arizona Sick Leave

Arizona Sick Leave

Last year, Arizona voters approved Proposition 206, "The Fair Wages & Healthy Families Act." This act mandates that Arizona employers provide their Arizona employees with a specific paid sick leave plan. Before this proposition, there were no laws enforcing Arizona employers to provide paid sick leave to their employees.

The law is effective July 1, 2017 and current Arizona employee accruals must begin at this point. Any newly-hired Arizona employees must begin accruing at the start of their employment.

 

The following are requirements now in place due to the law:

  • You must provide at least one hour of earned paid sick leave for every 30 hours worked
  • You must assume that exempt (salaried) employees work 40 hours each workweek unless it can be established that their normal workweek is less
  • You must allow the employee to either carry-over their remaining sick leave from year-to-year or provide payment in lieu of the sick leave balance* (If you provide payment in lieu of the sick leave balance, then you must also provide the next year's projected annual amount of the employee's accrued sick leave as a lump sum balance ready for use immediately.)
The following are rights employers have as an employer administrating a sick leave plan:
  • If you are an employer with 15 or more Arizona employees, then you may stop sick plan accruals after 40 hours during a 12-month consecutive period
  • If you are an employer with 15 or more Arizona employees, then you may prevent an employee from using more than 40 hours of sick leave during a 12-month consecutive period
  • If you are an employer with less than 15 Arizona employees, then you may stop sick plan accruals after 24 hours during a 12-month consecutive period
  • If you are an employer with less than 15 Arizona employees, then you may prevent an employee form using more than 24 hours of sick leave during a 12-month consecutive period
  • You may choose not to pay out any sick leave upon an employee's termination
Sick leave can be used for the following reasons:
  • Employee or family illness
  • Employee or family member that is the victim of sexual assault, stalking, or domestic violence
  • Employee whose employer closes due to public health emergency
  • Employee's family member's care center closes due to public health emergency

Please click here for more information form the Industrial Commission of Arizona. Additionally, you may contact your Support Team if you have questions regarding the setup of this accrual plan.

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