HR Alert

Arizona Issues Proposed Paid Sick Leave Rules

Rules Address Carry Over, Posting Requirements, and More

The Industrial Commission of Arizona has released proposed rules regarding the state's paid sick leave law.

Proposed Rules
Under the proposed rules, an employee of an employer with 15 or more employees would be able to carry over to the following year a maximum of 40 hours of unused earned paid sick time. An employee of an employer with fewer than 15 employees would be able to carry over to the following year a maximum of 24 hours of unused earned paid sick time.

Alternatively, in lieu of carry over, an employer may pay an employee for unused earned paid sick time under certain provisions of state law (section: D(4)). Carry over must not affect accrual or use rights under state law.

Additionally under the proposed rules, with the exception of "small employers," every employer subject to certain provisions of state law (Title 23, Article 8: Minimum Wage and Title 23, Article 8.1: Earned Paid Sick Time) would be required to place posters prescribed by the state Labor Department informing employees of their rights under the law. With regard to the posting requirements, "small employer" generally would be defined as a corporation, proprietorship, partnership, joint venture, limited liability company, trust, or association that has less than $500,000 in gross annual revenue.

Background
Under a 2016 amendment to the Arizona Minimum Wage Act, effective July 1, 2017, most Arizona employers are required to provide paid sick time to eligible employees. Employees of an employer with 15 or more employees will accrue a minimum of 1 hour of earned paid sick time for every 30 hours worked, up to a maximum of 40 hours of earned paid sick time per year, unless the employer selects a higher limit.

Employees of an employer with fewer than 15 employees will accrue a minimum of 1 hour of earned paid sick time for every 30 hours worked, but such employees may not accrue or use more than 24 hours of earned paid sick time per year, unless the employer selects a higher limit.

Further Information and Updates
Additional information, including details on recordkeeping requirements, is contained in the text of the proposed rules. Stay tuned for updates regarding the status of the proposed rules.


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